What is the primary purpose of the Project Charter?

• A. Formally authorize the project and grant the project manager authority to apply organizational resources.
• B. Define the project scope in detail and baseline it.
• C. Identify all risks and create risk responses.
• D. Establish the project budget and funding approvals.

Answer: (A)

The Project Charter is the official go-ahead for a project and the source of the project manager’s authority to use organizational resources. It’s issued by the project sponsor or initiator and formalizes the decision to embark on the work, naming who will lead it and outlining high-level goals, constraints, and stakeholders. This authorization is what legitimizes the team to allocate people, money, and other assets to the project.

Detailed scope, risk responses, and budget planning come from later planning activities. The scope is defined and baselined in the scope documents, risks are analyzed with planned responses in risk management, and the budget is developed through cost management processes. So, the essential purpose of the charter is to officially authorize the project and empower the project manager to apply resources.