All You need to Know about Project Charter

 A project charter is a document that formally authorizes a project and summarizes its key conditions and parameters. It is also referred to as a project authorization or project initiation document. The project charter is issued by the project sponsor, who approves the project and commits funding. It establishes the framework for developing a detailed baseline plan for project execution. Not all projects require a project charter. Informal projects, such as a home remodeling, wedding, community event, or response to a natural disaster, may not warrant a project charter.

 

Project Charter Date: 2/7/2025 

 

1.0 Project Identification
Project Title	Renovation of Basement at 123 Toronto Street, Toronto, ON, Canada
Company Name	PME Consultants Inc., 1042 Maple Road, Toronto, ON, Canada
Sponsor	Robert JD, Homeowner – 123 Toronto Street
Project Manager	Sudip Gautam
Project Team Resources	Project Managers, Contractors, Subcontractors, Designers, Building Inspector, Project Sponsor, Accounting and Procurement Team, Suppliers, Insurance Company
Version History	1.0
2.0 Project Purpose (Business reasons for project)
Robert JD’s home at 123 Toronto Street, Toronto, currently has an underutilized basement, which primarily serves as a temporary storage area. This project's purpose is to transform his basement into a fully functional and comfortable living space. This renovation will enhance the overall utility of the home, increase its property value, and provide additional living accommodations tailored to the homeowner’s requirements. The redesigned basement will include a 2-bedroom living space, a bathroom, living room, kitchen and dining room, creating a versatile environment for residents.    The project will impact multiple stakeholders, including:  The homeowner (Robert JD)  Project management company (PME Consultants Inc.)  Contractor (Great Lakes Builders)  Supplier (The Home Depot Canada)  City inspectors and regulatory authorities  Potential future occupants
3.0 Project Objectives
These are the desired outcomes of this basement renovation project:  Space Transformation: Convert the 800-sq.ft. basement into a fully functional 2-bedroom living area-- each with its own closet space-- with a shared bathroom, living room, kitchen and dining room  Enhanced Aesthetic: Elevate the overall aesthetic by incorporating Scandinavian interior design, using a neutral color palette, light wooden floors, and minimalist furniture that creates a cozy and relaxing atmosphere.  Higher Property Value: Significantly raise the market value of the property by improving the basement’s living conditions.  Successful Completion Within Schedule and Budget: The project must be completed within 10 weeks starting on January 27, 2025, and not exceed the budget of $100,000, including contingency funds to cover unforeseen charges.
4.0 Project Description
Robert JD, the homeowner of 123 Toronto Street, Toronto, has requested PME Consultants Inc. to work on the renovation of its 800-sqft basement and transform it into a functional living space with a total budget of $100,000.00. PME Consultants Inc. will be responsible for doing the project charter, baseline plan, monitoring and controlling, site inspection, design, and financial management. The team will contact the sponsor's selected contractor which is “Great Lakes Builders” to work on the demolition and reconstruction of the basement with respect to the structure's existing structural, architectural, electrical, and HVAC layouts. The team reached an agreement with The Home Depot Canada to ensure the timely supply of all required materials to the job site. If any modifications to the layout are required, the team will seek approval from Robert before proceeding. The scope of works is as follows:  Inspection and review of current structural, architectural, electrical, plumbing, and HVAC design  Processing of construction permits  Architectural, electrical, plumbing, and HVAC design of new basement  Site clearing and demolition of existing non-structural elements  Procurement of construction materials, fixtures, finishes, and furniture  Installation of concrete and drywall framing, insulation, electrical and plumbing systems, painting, flooring, and bathroom fixtures  The items that are out of scope are:  Structural modifications (e.g. foundation, beam, or column changes)  HVAC upgrades beyond code requirements    This project will adhere to all applicable standards not limited to:  National Building Code of Canada 2024  Ontario Building Code  Ontario Electrical Safety Code  National Plumbing Code of Canada 2024    Stakeholder   Responsibilities  Contact Number  Robert JD, Project Sponsor  Provides funding  Approves major project milestones,  Ensures final acceptance of the completed project.  (657) 283-5489  Sudip Gautam  Project Managers @ PME Consultants Inc  Monitoring and controlling project progress   Manage the development of the project charter and the baseline plan  Identifies and manages risks  Reports and forecasts project status  Resolves conflicts within the project and changes requested  Oversees quality assurance of the project management process  Tracks action items and any related budgets  (416) 238-4230  Jason Brown, Project Engineer @ Great Lakes Builders  Provides demolition and construction services on a fixed-price contract  Reports progress to project management team on a weekly basis  (416) 393-2934  Cecille Williams, Head of Accounting an @ PME Consultants Inc  Financial management department ensuring that all costs are tracked, budgets are adhered to, and financial compliance is maintained  (647) 384-2384  Millie Jackson, Head of Design @ PME Consultants Inc  Facilitates architectural, electrical, plumbing, and HVAC design  Responsible for clash detection within all trades  Ensures the layout meets both functional and aesthetic requirements  Ensures compliance with zoning laws and permits  (905) 230-2394  Peter Laurent, Inspector @ City of Toronto  Ensures compliance with zoning, building codes and permit requirements  (647) 593-9428  The Home Depot, Supplier or Vendor  Supplies all requirement materials to job location
5.0 Success Criteria (Expected benefits)
To achieve project success, the following criteria must be met:  The project must be initiated on January 27, 2025, and be completed before April 7, 2025.  The total project cost must not exceed the allocated budget of $100,000, including contingency funds.  The project must meet or exceed the minimum quality standards in accordance with Ontario and Toronto building codes.  The renovation must comply with all architectural, structural, electrical, plumbing, and HVAC, and safety regulations.  The team aims to receive positive feedback from the owner, with a satisfaction rating of more than 90%, and sign off on the final project completion.    The project is expected to result in the following benefits:  Increased usable living space to accommodate various needs such as relaxation, work, or hosting family gatherings.  Improved overall functionality of the house with the addition of bedrooms, bathroom, living room and kitchen.  Energy efficiency and modern upgrades to reduce long-term utility expenses.  Comfortable accommodation for 2 to 4 visitors for occasional stays.  Potential lease opportunity to tenants  Increased overall property value within the market and strong investment return.
6.0 Funding (approx. budget required)
The total budget allocated for this project is $100,000. This includes all materials, labor, permits, and contingency costs. The budget allocation is as follows:    Expense  Allocated Amount (CAD)  Description  City Permit  $ 1,500.00  Processing of ‘Application for a Permit to Construct or Demolish’ from the City of Toronto  Demolition  $ 5,000.00  Removal of existing structures, debris disposal, and site preparation.  Materials  $ 50,000.00  Procurement of construction materials, fixtures, flooring, and finishes.  Labor  $ 35,000.00  Skilled labor costs, including designers, contractors, electricians, plumbers, and carpenters.  Contingency  $ 8,500.00  Reserved for unforeseen expenses such as structural issues, material cost fluctuations, or additional permits  Total Budget  $ 100,000.00  Comprehensive funding for complete execution.    The budget for this project will be closely monitored throughout the project lifecycle, with consistent cost tracking and financial reporting to ensure adherence to the allocated funds. Any budget overruns or necessary reallocations will require formal approval from the project stakeholder.
7.0 Major Project DELIVERABLES    The project team is tasked to produce the following deliverables:  Initiation and Planning:  Project Charter  Project Baseline Plan  Site Inspection Report  Architectural, electrical, plumbing, and HVAC plans  Permit to Construct or Demolish from City of Toronto  Executing:  Demolition  Framed walls for the new bathroom, family room, and guest room  Complete electrical wiring and outlets, lighting (for example LED strip light) installed and inspected  A large egress window  Complete plumbing for the bathroom including fixtures, inspected and approved  Insulated and drywalled walls ready for painting  Painted walls, trimming  Drop ceilings  New flooring installed in all areas  Installed bathroom and kitchen fixtures  Furniture and appliances  Project Progress Status Report  Closing:  Final inspection and punch list  Project Close Report As-built drawing and operational manual document
8.0 project Milestone Schedule
Major Events / Milestones		Target Dates
Baseline project plan and site inspection done		Week 1
Design drawings complete and permits from City of Toronto obtained		Week 2
Demolition and removal of debris done		Week 3
Rough-in of electrical and plumbing systems installed		Week 4
Installation of a large egress window, framing and insulation complete		Week 5
Drywall installation, installation of drop ceiling and taping complete (ready for finishing)		Week 6
Finishes and painting works done		Week 7
Flooring installation done		Week 8
Create Project Status Report  Bathroom fixtures, lighting fixtures, and fittings installed  Furnitures and appliances assembled		Week 9
Final inspection, preparation of as-built drawing, project completion, homeowner sign-off  Project Close Report		Week 10
9.0 key assumptions
Permitting and Regulatory Compliance  It is assumed that the necessary permits will be obtained from the City of Toronto within 1 week.  Structural and Site Conditions  It is assumed that there are no structural issues on the basement that will require additional work.  None or minimal structural damage or presence of hazardous materials.  Material and Labor Availability  It is assumed that all materials will be available at the scheduled time.  All materials and labor costs will be within the estimated budget.  Finances and Payment  Payments will be settled biweekly, and it is assumed that there will be no delays.  Schedule and Project Timeline  Project timeline will be adhered to by inspectors, contractors, and suppliers.  No major approval delays  No major labor delays   No significant weather delays will impact construction.
10.0 CONSTRAINTS
Work Schedule  Construction activities must adhere to a 9:00 AM – 5:00 PM work schedule  Monday – Friday to comply with noise regulations and minimize disruptions  Resource Availability  All required labor and materials must be available on-site throughout the project lifecycle to prevent delays  Contractor and subcontractor availability must align with the project timeline  Work Area Limitations  Renovation activities will be restricted to the basement, with no modifications to the existing upper levels of the home  Access to non-project areas must be maintained for the homeowner’s regular use  Budget Constraints  The total project budget is restricted to $100,000 with contingency.  Any budget overruns must be formally reviewed and approved before proceeding  Regulatory Compliance  The project must comply with all City of Toronto building codes, zoning laws and permit requirements without deviation  Inspections and approvals must be scheduled within the planned timeline to avoid unnecessary delays

 

 

11.0 MAJOR RISKS  Risks will be reviewed and updated regularly to reflect the current understanding as actual events occur. The following lists the potential risks for this project:
Unexpected expenses: Material cost fluctuations (increase in costs)
Permit delays: Inspection and compliance issues
Structural and site conditions: Existing and hidden problems in the foundation or structure
Material availability and delivery delays
Scheduling, contractor availability, and outsourced employee availability
Extreme weather delays: Flooding or prolonged snowstorms that require work suspension
12.0 Project’s acceptance criteria (must be measurable)
100% of outlets, switches, lighting, and kitchen fixtures are operational and compliant with the Toronto Electrical Safety Code and pass final electrical inspection with zero violations.  Pass final plumbing inspection including no leaks and with proper drainage with zero violations.  All air-conditioning and heating units, vents, and exhaust fans are 100% operational  All walls, ceilings, and floors are deemed structurally sound by the City of Toronto building inspector.  All doors and windows are operational and can be opened and closed easily  Project completed by April 7, 2025, with few business days of allowable delay due to unforeseen circumstances.  Total project cost ≤$100,000 (including contingency), with detailed expense reports matching the approved budget breakdown (±0% tolerance).  The worksite is left clean, with all debris removed and no damage to existing home areas.  As-built drawings and operation manuals for electrical/plumbing systems provided.  Homeowner signs a formal acceptance form after final walkthrough.  All permits, inspection certificates, and warranties are submitted to the homeowner.  All defects identified during the final walkthrough resolved within 5 business days.  The entire basement is deemed habitable by the homeowner.
13.0 Approvals  The signatory agrees that the content as presented in this project charter accurately describes the objective and scope for this project.       Name, Role                                                   Signature                                                            date
Robert JD, Sponsor	Robert JD	02/03/25
Sudip Gautam, Project Manager	Sudip Gautam	02/03/25