Before anything, you must understand that Project Charter is important!
Be prepared to see a few questions around the project charter in the PMP exam. So what all must you know about the Project Charter? Let’s start with a few basics.
From definition perspective, Project Charter is a formal document that authorizes the start of a project. It is this very document that names and appoints a project manager, assigns a summary budget, establishes a project time line and documents key assumptions and constraints.
Other things that are usually included in the project charter are the project boundary and its key deliverables.
Do note that although the project is authorized to start in the charter, the Project Manager might be involved, alongwith the project team, to help create the project charter. However, the approval and funding are handled external to the project boundaries meaning that the funding and go ahead for the project is given by someone external to the project team. This could be company’s management, customer, sponsor, project initiator etc