Project Charter Development

Project Charter Development


It is in the interests of every project that the project manager works with the stakeholders as well as other experts to ensure the effective completion of the project charter.  Where effectively developed, the charter details the project in its entirety which is vital in providing clarity of roles. Additionally, the charter ensures that authority is defined, management support realized, project expectations explained, the scope of the project established as well as project objectives are aligned to the organizational objectives. Consequently, the high-level objectiveof the project remains resolving agency issues in client-contractor relationships.  To realize the above, the scope is outlined with the integration of project best management practices.

Background to the Project

The success of any project is determined by the level with which its objectives are met or exceeds such objectives or expectations. The project at hand involves “The Merck innovation center” where the main objective is resolving agency issues in client-contractor relationships.  From the need to provide ideas for innovation projects, it is necessary to ensure effective planning is infused and be seen to support the core objective of enhancing innovation. The development of relationships remains critical in project success where it can be challenged by goal conflict, opportunist behavior as well as information asymmetry.

However, it is evident from the case scenario that Merck has inbuilt methods to overcome the same given the complex as well as the uncertain environment that it operates.  The engagement of concrete and steel works focused on various aspects which include design, (architectural) for the complex “concrete-cum-steel structure” which gives the spotlight to the management team.

Procurement is also indicated as an integral aspect as demonstrated with the impact on the project management process.  The bidding process which involves the contractors provides the information asymmetry between the client, engineers, architect, and the bidders or potential contractors.

Reasons for the Project

Different projects differ in their intent or vision which presents the diversity of project management. From the case scenario, the project involves concrete and steel works but the significance is given to resolving agency issues in client-contractor relationships. To ensure project success, it is necessary to positively engage all stakeholders who must understand their roles within the project and be seen to support its completion (Lozano, Ceulemans, and Scarff Seatter, 2015).  It is through effective communication that the project manager can realize the same where a shared vision should be established backed by a strong culture. To comprehend the reasons behind the project, the project manager must use the following criteria in the project execution:

To ensure that this project attains success, the following steps were instituted in the listed sequence:

  • Develop plans/design
  • Identify stakeholder and management commitment
  • define the scope in goals and objectives
  • Set blueprints
  • Consolidate the project team and financial resources
  • manage communication
  • Set up internal control processes
  • actualize the project

Project Objectives

After the project, Merck innovation center is expected to have better client-contractor relationships which are vital in realizing its core objective of innovation. The specific objectives include

  • Enhanced customer service
  • Reduction in operating costs
  • Improve the organization’s image
  • Enhance staff efficiencies.

However, the success of the project will be determined by the degree to which Merck’s success metrics are met (Cooke‐Davies, Crawford, and Lechler, 2009). It is essential to note that the conditions are founded on sufficient resource allocation for specific projects. After getting to the production phase, it is necessary to set measurable criteria

Constraints, Limitations, and Risks

Every project is expected to encounter constraints, limitations as well as risks considering that there are variances that affect and influence completion of the same. The case scenario illustrates that operating in Europe’s construction market exposes


Merck operates in a highly fragmented environment where rewards and risk allocation are mismatched. Lack of skills also indicates to hamper the growth of the industry meaning that the company is also subjected to the effects.  Low labor productivity which is expected to affect the highest levels of management significantly constraints project management. Poor morale among the project team is known to significantly constraint completion with the team members slowing down on productivity which affects timelines and project quality.


Risks involve all factors that are contingent on the existence of the project that determines and influence the completion of a project. In this case, the existence of conflicts in client-contractor relationships which is the main subject poses enough risk in the project. However, Zhang and Fan, (2014) illustrate that it is necessary to determine the significance or priority of the risks. In this case, the velocity, impact, and risk category are vital factors that should be determined to establish if they can hamper the continuity of the project.

The tendering process as seen in the indecisiveness by mark and Steven may attract adverse consequences. This also exposes the company’s governance rigidity which may edge it out against competition where more flexible systems are utilized.

Other risks involve lack of sufficient build-up of project knowledge with the contractors joining the bidding process. It is also linked to the lack of understanding of the required materials provided given the lack of familiarization with the project requirements


These aspects hamper project completion based on the boundaries in place which may include internal as well as external factors. The internal aspects may involve lack of management support which discourages the project team from realizing success in its tasks. Additionally, the project may face financial limitations. On the other hand, there are external limitations such as poor legal environments as well as the political climate that collectively hamper project completion.

Leadership Structure (Project Manager And His Or Her Senior Aides: List The Roles And Explain What Each Does In The Project. You Need To Cite 4 Roles)

As indicated, projects have various stakeholders but it is the leadership that significantly determines the attainment of the expectations based on the set tone. Where project reports are vital in taking stock, a project charter ensures that every stakeholder understands their role towards the completion of the project (Sadeh, Dvir, and Malach-Pines, 2006).  The project team consists of individuals dedicated to the project and includes the project manager who worksclosely to ensure that problems are solved. On the other hand, the roles are determined by the project agility that influences the approach, resources allocation, and effectiveness in completion.


Leadership structure

It is expected that every corporations headed by a chief executive officer who in this case takes overall responsibility as seen in the recruitment of Mark. Project planning, handled by Mark ranks top among the roles and responsibilities of a project manager considering the need to dissect the activities in the project into smaller units that are controllable. With this, the manager is assured of the realization of overall milestones with the actualization of the smaller tasks.

The project team consisting of the project manager should demonstrate direction, leadership as well as providing support to the rest of the team to facilitate the accomplishment of their project tasks. In this case, the project manager should liaise with the team to solve difficult tasks as well as develop support which is vital in enhancing individual support and cooperation.

The manager is also responsible for initiating, planning, executing as well as monitoring and control of various aspects of the project. However, the effectiveness of this manager is determined by the success realized though this may be relative to timeframes and resource availability including the quality requirements.

Additionally, the project manager is required to develop a work breakdown structure (WBS) that defines and organizes the project’s scope in a hierarchical structure.  By itemizing project tasks into actionable parts, the manager positions the team to understand the finer details and expectations.

The other in line is the project architect who is responsible for providing architectural leadership given the nature of the projects handled by the company. In line with the architect is the lead engineer as well as the project procurement manager. Collectively, these team members determine the effectiveness of the project in its completion.


Project Risks and Their Mitigation

Risks occur and remain imminent in every organization where such occurrence remains a matter of when but not if they happen (Acebes et al., 2014). For example, in resolving agency issues in client-contractor relationships, Merck may experience a lack of willingness by contracting teams to compromise on hard-line positions. Risks differ in different categories including:

External: these are risks that involve many people and the help of vendors which is vital in influencing completion but at high risk.

Execution:  Emanate from lack of organizational support where utilization of resources is not based on specific scope.

Technology:  According to Samadi, Nazari-Shirkouhi, and Keramati (2014), the increase in technological use demands that organizations implement the same to align with market demands which may attract related risks.

Regulatory: Include regulations set and affect business operations while others may specifically touch on the industry in question.

Project Stakeholders and How to Interact With Them

Stakeholders in a project can make or break its success despite meeting all the deliverables where they are not satisfied. The stakeholders in Merck’s case involve the management that includes the project manager, team members, and internal customers.  Also, there are contractors, suppliers, the government as well as external customers.

Each of the stakeholders requires a different level of interaction where its flip side may be an example of the reason behind the case scenario conflict.

The management: Requires planning and setting milestones as well as reporting systems while enhancing communication to demonstrate support.

The government: Provides regulation of the industry environments where the professionals are expected to adhere to such regulations. Additionally, it provides necessary licensing which facilitates the activities within a project. The legal representatives should be on set to ensure that these aspects are effectively covered while no collisions with the legal provisions exist.

Contractors/ suppliers: There are critical in the completion of any project and their input provides materials required in the execution of the project. The contractors also include outsourced service providers who are actively involved in the project execution (Besner and Hobbs, 2013). This category requires careful consideration as seen in the case scenario where there is conflict, should be handled with care to ensure that conflicts do not arise.

Customers: while there are internal customers, it is the external customers that significantly determine the uptake and growth of the uptake of products and the project respectively. In the case of Merck, customers contract the company for its construction innovation services. Given their significance and sensitivity in business growth, there should be a strong public relations team to ensure that feedback is positively interpreted for implementation in project success (Elias, 2016).

The Vision of The Project and The Type Of Project Team Culture You Wish To Promote In Your Team

It is the objective of every project manager or organizational leader to realize success in all projects initiated.  In this case, Merck should not only realize success in eliminating conflicts with client-contractor relationships but also have completed projects.  However, all these factors are determined by the culture that reigns within the organization. Strong cultures facilitate the decision patterns, team member attitudes as well as acting as a guide to actions informing “the way we do things” statements.

A vision sets the path to which an organization or project in this case should adhere if success is to be realized. Nevertheless, the vision should be shared but team members should be involved in the shared approach. It is from the participation and ownership of the vision that aspiration, commitment, and alignment will be actualized.  Despite the significance of the project vision, it is necessary to ensure that it is aligned with the overall vision of the organization. Where shared, a higher degree of commitment, engagement, as well as thinking diversity, are all enhanced.

However, it is the project manager in this case who has the greatest responsibility of ensuring that the team is founded on strong values as well as beliefs that drive the team. While there may be difficulties as seen in the case of Steven, Mark, and Claire who are seen familiarizing themselves in the project, it is critical to understand the underlying processes and cultural development. Consequently, it is necessary to ensure the culture develops means to identify, change as well as adapt behavior to fit the existing culture. As Patanakul, Iewwongcharoen, and Milosevic, (2010) demonstrate effective development of a vision or culture demands linking the strategy, culture, and leadership as well as performance.


Project managers have a profound impact on the organizations while projects have a similar impact.  Projects are known to transform organizations through the changes infused on the individuals, groups, or the entire organization. It is from this understanding that project managers should interact with different sub-elements in the organization or project simultaneously to ensure that the design and development of new projects are completed irrespective of the complexity or technicality in nature. From the above, “The Merck innovation center” needs to resolve agency issues in client-contractor relations presents the significance of project management in ensuring project success. However, it is necessary to identify the Constraints, limitations, and risks as well as the Leadership structure. Also, project risks and their mitigation, project stakeholders and how to interact with them.

The vision of the project must be effectively handled.