Project Management

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Is the Project Charter a Contract?

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George Lewis Program/Project Manager| DXC Technology Company Heredia, Costa Rica
Is the Project Charter a Contract?
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Mikel Steadman PMO Leader| Development Dimensions International Troy, Nh, United States
George,

A contract is enforceable by law. A charter is enforceable by the executives, steering committee, and program teams.

A charter is primarily the company's aligned commitment to a goal; it's purpose, the objectives, the return, the roles, the timeline estimates, the business case supporting the initiative, etc.

Mikel
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Ed Tsyitee Jr Consultant | Consultant Tucson, Az, United States
Yes and no. Yes it's an agreement between stakeholders and the project team on what project will accomplish, how change management and risks are handled, and the scope of work to be completed.

No, it's not a contract in the legal context of the word.
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Steve Ratkaj Ontario, Canada
For us...

The Project Charter is used to establish a mandate for a project organization and needs to articulate how the various management functions will be achieved by personnel assigned directly or through the matrix to the organization. It will also define the relationships with personnel from the other Government departments assigned to the project.
The Project Charter is a document issued by the Project Sponsor that formally authorizes the existence of a project, and provides the Project Manager (PM) with the authority to apply organizational resources to project activities.
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Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada
George -

It is a contract in principle in that it is usually a formal, written document which authorizes a PM to invest organization resources in a project but is not a legally enforceable contract as there are no baselines established.

Kiron
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Thomas Walenta Global Project Economy Expert Hackenheim, Germany
No.
A contract is between different legal entities.
A charter is an agreement within one legal entity/organization, preferable in writing.
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Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
George

It is not a contract but it is a formal internal document that authorizes the project. A contract is a totally different and legal documents while Charter is not.

RK
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Riad Alhammoud Project management| Langan Abu Dhabi, United Arab Emirates
Thanks for the question George. Although I work in construction projects for many years but I never heard of the Charter.
I started to know about the charter when I studied my MSC in PM and in PMbok.

Regards,
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Anton Oosthuizen Senior Business Analyst / Project Manager| Self Employed Pretoria, Gauteng, South Africa
No, it is not a legally binding document.
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Luis Branco CEO| Business Insight, Consultores de Gestão, Ldª Carcavelos, Lisboa, Portugal
Dear George
Interesting your question
Thanks for sharing

I think you already had enough "nos" to your question :-) I can add my
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Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada
It comes down to what we mean by contract. For example, when the Manifesto for Agile Software Development was written, the value statement "Customer Colllaboration over Contract Negotiation" did not always mean a legally enforceable contract. A requirements document could be thought of as a contract as it defines what a team will deliver to a group of stakeholders but unless it is incorporated into a legal document it wouldn't be enforceable.

Kiron
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