The project charter establishes a partnership between the performing and requesting organizations.

In the case of external projects, a formal contract is typically the preferred way to establish an agreement.

A project charter may still be used to establish internal agreements within

an organization to ensure proper delivery under the contract.

The approved project charter formally initiates the project.

A project manager is identified and assigned as early in the project as is feasible,

preferably while the project charter is being

developed and always prior to the start of planning.

The project charter can be developed by the sponsor or the project manager

in collaboration with the initiating entity.