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Guidelines For Managers

Model Guideline #12

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Project Charter, Justification & Submission

Guideline Goal

  • To provide a consistent format for presenting the justification supporting an "Authorization for Expenditure" (AFE) submission for the continuation of the project through Phases 3 & 4 of the project life cycle
  • It is designed to facilitate management's selection and approval amongst competing projects

Expectations - 1

  • Every project progressing from Phase 2 into Phases 3 & 4 will be supported by a Project Charter
    • Sometimes referred to as a Project Brief
  • The Project Charter encompasses the Project Justification for further expenditure on the project
  • And the Project Implementation Plan

Expectations - 2

The Project Charter will include:

    • Complete Systems Scope Descriptions
    • Updated Project Assumptions
      • Upon which the Plan and Justification have been prepared
    • The latest Priority Class
    • The project's Key Success Indicators
      • Providing guidance for the management of the project
    • An AFE Class Estimate, converted to a working budget

Expectations - 3

  • Approval for Expenditure must be obtained before any commitments are made involving Phases 3 & 4
  • The Justification section of the Project Charter must conform to the organization's financial standards

Particulars - 1

  • The submission of a Project Charter is a major milestone control point in the life of every project
  • Approval results in a formal "Approval for Expenditure" (AFE)
  • This AFE commits the organization to the continuation and completion of the project
    • And corporate funding and resources must be set aside accordingly

Particulars - 2

  • As a control point, it affords the organization an opportunity to examine the project's documentation closely
    • And accept it, amend it, recycle it or reject it.
    • It's like a highway exit ramp - an opportunity to change direction, or exit altogether if the project expectations no longer meet corporate management's criteria
    • Or if the necessary corporate resources are not available

Particulars - 3

  • On some types of specialized project, involving very long lead times for specialized items, an AFE may be approved for "Purchasing only"
    • Where a project has a reasonable certainty of proceeding at some time in the future
    • Such as a project required to meet regulatory or safety requirements
  • In such cases, a full Project Charter submission approval must still be in place before implementation is commenced

Definitions and Responsibility

Definitions to be included

    • Authorization for Expenditure, Project Justification, Project Charter

Primary responsibility

    • Project Phase Manager

Responsible to

    • Project Sponsor