Guide
Team charter vs project charter: which one do you need?
A project charter is about the work. A team charter is about the people. On a two-person side project I'd write the project charter first, then the team charter. Each fits on one page.
Not legal advice. Neither document assigns ownership of code, brand or equity, and neither creates a company. For that, use a founders agreement and get advice for your country.
The short answer
Ask yourself one question: is the thing we are missing agreement on what we build, or on how we work together?
- What, how much, by when: write the project charter. Goal, scope, budget, deadline, success measure and a stop rule.
- Who decides, who pays, who can get into each account: write the team charter.
- Both: do the project charter first. You can't decide who approves spending until you know roughly what the project will cost.
Side by side
This table compares the two templates on this site, as checked on 26 October 2026.
| Project charter | Team charter | |
|---|---|---|
| It is about | The work | The people |
| Main question | What are we building, for how much, and when do we stop? | Who decides what, and who owns each account? |
| Sections | Goal, scope, deliverables, budget and time caps, milestones, risks, success, stop rule | Goal and non-goals, who decides, money limit, check-ins, accounts, disagreements, leaving, review |
| Money | A cap on the total | A line above which both people must agree |
| Accounts | Not covered | Owner, payer and recovery contact for each |
| When it ends | When you hit the stop rule or finish | It stays, and you review it every three months |
| Write it | Before you buy the domain | Once you work together and money or accounts are involved |
The overlap is small: both name a goal and both set a money number. The project charter caps the total. The team charter sets the approval line for each spend.
Three examples (illustrative)
These are made-up situations to show the choice. They are not real teams.
1. Two friends, an idea, no code yet
You are still arguing about features and nobody has bought anything. Write the project charter. The out-of-scope line and the stop rule will settle most of it.
2. A prototype is live and one person pays for everything
The scope is clear, but the domain, hosting and an AI plan sit on one person's card and account. Write the team charter. The accounts section names an owner and a recovery contact for each, and the money line stops surprise bills. Then run the access audit.
3. A three-person hackathon team
You have a weekend, not a quarter. Skip both long forms. Use a short project charter for goal, scope and stop rule, and the hackathon kit for who owns what and how costs are split.
Can I merge them into one page?
You can, and for a weekend build I would. For a project that runs for months, I'd keep two short documents. They change at different speeds: the scope changes at each milestone, while who owns the domain should barely change at all. One page per document keeps each easy to review.
Where the other documents fit
- RACI matrix: who is accountable for each task. Useful when the task list grows past what the team charter's "who decides" line can hold.
- Decision log: a dated record of what you changed and why, so a charter edit is never a silent one.
- Handover checklist: what to do when someone leaves, which the team charter points to.
- Founders agreement: shares, costs, accounts and leaving. This is the one that touches ownership.
Frequently asked questions
What is the difference between a team charter and a project charter?
A project charter defines the work: goal, scope, budget, time and a stop rule. A team charter defines how the people work: who decides, who approves spending and who owns each account.
Which should I write first?
The project charter. Once you know what you are building and what it may cost, the team charter's decision and spending rules are easier to set.
Do I need both for a side project?
Not always. If you only have an idea, the project charter is enough. Add the team charter as soon as you share accounts or money.
Is either document legally binding?
They are not meant to be. They record how you agreed to work. Ownership, equity and liability need a separate legal agreement reviewed in your country.
How long should each one be?
One page each. If a charter grows beyond that, you are planning rather than agreeing.
Related
- Project charter template
- Team charter template
- Side project with a partner and no company
- Bus factor in a two-person project
- All co-founder guides and free tools
Write the charter, then keep the accounts it names in one place.