The project charter is a statement of the scope, objectives and participants in a project. It provides a
preliminary delineation of roles and responsibilities, outlines the project objectives, identifies the main
stakeholders, and defines the authority of the project manager. It serves as a reference of authority for the future of
the project. Establishing the project charter is a crucial first step to formalize the project. It establishes a
foundation for the project by ensuring that all project participants share a clear understanding of the project goals
and agree on how the objectives will be achieved.