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What are the difference between project charter and project contract?

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Question added by John Brown , Project Manager , SAW
Date Posted: 2018/09/17
Mohamed Motasim Salih
by Mohamed Motasim Salih , Planning Engineer , National Innovative General Maintenace (NIGM), Part of NCC Group

Regarding a project, the contract is a legal agreement between two separate organizations (buyer and seller), while a project charter is "a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities" as defined by the PMBOK.

Differences between the two documents are demonstrated in the following table taken from pmbypm.com.

 

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