[Organisation Name]
Version: [v1.0]
Effective Date: [DD MMM YYYY]
Owner: [Enterprise PMO / Capital Projects Office]
Use this template for all medium to large capital expenditure (Capex) projects that are document-intensive (e.g., healthcare facilities, construction, manufacturing plants, and government infrastructure). Replace bracketed text with project-specific details.
Project Name
[Project name]
Project ID / Code
[Unique identifier]
Sponsoring Organisation / Business Unit
[Sponsor org / BU]
Project Sponsor
[Name, Title]
Project Manager
[Name, Title]
Date of Charter
[DD MMM YYYY]
Provide a concise description of the problem or opportunity, drivers (regulatory, safety, capacity, lifecycle replacement, growth), and how the project aligns to organisational strategy and capital plan. Reference business case and feasibility studies.
Describe the overall purpose of the project. List 3–7 SMART objectives and associated success criteria/KPIs.
Objective ID
Objective (SMART)
KPI / Success Measure
Target / Threshold
OBJ-01
[Example: Expand theatre capacity by 20% by FY26]
[Utilisation %, throughput, waiting time]
[Target value]
Clearly describe what is included in the project and what is explicitly excluded.
In Scope
Out of Scope
[Facilities, systems, processes, sites included]
[Items not included, deferred phases, related projects]
List key functional, technical, regulatory, and operational requirements, and the primary deliverables.
Requirement / Deliverable ID
Description
Owner
Notes (regulatory / standards)
REQ-01 / DEL-01
[e.g., New isolation ward compliant with infection control standards]
[Clinical / Engineering lead]
[Applicable codes/standards]
Summarise the key constraints (budget caps, schedule deadlines, site access, regulatory windows) and major assumptions underlying the business case.
· Constraints:
· [Example: Total project budget not to exceed $[X]m including contingency.]
· Assumptions:
· [Example: Planning approval will be obtained by [date].]
Milestone
Target Date
Notes
Concept approval
[DD MMM YYYY]
Business case approval
[DD MMM YYYY]
Design complete
[DD MMM YYYY]
Construction start
[DD MMM YYYY]
Practical completion / handover
[DD MMM YYYY]
Total estimated Capex
[$X,XXX,XXX]
Estimated lifecycle / Opex impact
[$ per year / FTE impact]
Approved budget to date
[$ already approved for planning/design]
Contingency (%)
[e.g., 10–20%]
Funding sources
[grants, bonds, internal funds]
Capture the top initial risks, major dependencies on other projects, and key interfaces (e.g., clinical operations, manufacturing, IT, utilities, regulators).
Risk / Dependency ID
Description
Impact (H/M/L)
Owner
Initial Response / Mitigation
R-01 / D-01
[Example: Site access dependency on local authority approvals]
H
[Name]
[Planned mitigation]
List key stakeholders and describe the governance structure (steering committee, working groups, PMO oversight).
Role / Body
Name / Function
Responsibilities
Project Sponsor
[Name(s)]
[Key responsibilities]
Steering Committee
[Name(s)]
[Key responsibilities]
Project Manager
[Name(s)]
[Key responsibilities]
Key Stakeholders (e.g., Clinical Leads, Plant Manager, Regulators)
[Name(s)]
[Key responsibilities]
Summarise the key regulatory, safety, environmental, financial and technical standards that apply (e.g., healthcare accreditation, building codes, GMP, environmental permits) and indicate which authorities must approve the project.
List related documents such as the business case, feasibility studies, environmental impact assessments, options analysis, risk register and procurement strategy. Indicate where they are stored (EDMS / SharePoint etc.) and under which record classification.
By signing this section, approvers formally authorise the project, confirm alignment with strategy and capital plan, and grant the Project Manager authority to apply organisational resources within the approved constraints.
Role
Name
Signature
Date
Project Sponsor
[Name]
Finance Representative / CFO Delegate
[Name]
Executive / Capital Committee Chair
[Name]
PMO Director
[Name]
This policy defines when and how the Capital Project Charter must be used for document-heavy capital expenditure (Capex) projects and establishes minimum governance expectations.
To ensure that all medium and large Capex projects are formally authorised, aligned to strategy, and governed in a consistent, auditable manner through the use of a standardised Capital Project Charter.
This policy applies to all Capex projects that:
· • Are expected to exceed [Organisation Threshold 1, e.g., $1m] in total life-of-project capital cost; or
· • Are complex and document-heavy (e.g., healthcare facilities, major building works, manufacturing plant upgrades, infrastructure, government-funded assets), regardless of value; or
· • Are funded by external parties (e.g., government grants, donors, lenders) that require formal project documentation and approvals.
Minor works and routine replacements below [Threshold 1] may follow a simplified approval process as defined by the Capital Projects Office.
Capital Project: A time-bound initiative that results in the acquisition, construction, or major improvement of a long-lived asset (e.g., building, plant, equipment, infrastructure).
Project Charter: A document that formally authorises a project, summarises its objectives, scope, key constraints, and stakeholders, and grants authority to the Project Manager to apply organisational resources.
Project Sponsor: The executive accountable for the business outcome of the project and for securing funding and approvals.
Capital Projects Office (CPO) / PMO: The central function responsible for capital project governance standards, tools, and assurance.
4.1 Requirement to Prepare a Charter
All in-scope projects must have an approved Capital Project Charter before committing funds beyond pre-feasibility / concept development (e.g., before commencing detailed design, procurement, or construction).
4.2 Minimum Content
The Project Charter must, at a minimum, include the sections listed in Part A of this document. The CPO/PMO may issue supplemental templates for sector-specific requirements (e.g., infection control, GMP, environmental impact, safety in design).
4.3 Approval Thresholds
Approval authority is based on the project's total estimated capital cost and risk profile. As a guide:
Tier
Estimated Capex Range
Approval Authority
Additional Requirements
Tier 1
< [Threshold 1] (e.g., <$1m)
Business Unit Director + PMO review
Standard Charter
Tier 2
[Threshold 1] – [Threshold 2] (e.g., $1m–$10m)
Executive Sponsor + Finance + Capital Committee
Formal business case, risk workshop
Tier 3
≥ [Threshold 2] (e.g., ≥$10m) or high risk/strategic
Board / Governing Body
Independent assurance / external review, stage-gate approvals
4.4 Stage-Gate Use
The Charter is created at Concept / Initiation and updated at each major stage-gate (e.g., Concept Approval, Business Case Approval, Design Freeze, Construction Go/No-Go). Changes to objectives, scope, budget, or schedule must be reflected in the Charter and re-approved at the appropriate level.
4.5 Integration with Business Case
The Charter summarises key information from the business case (need, options, preferred solution, financials) but does not replace the full business case. For government-funded or regulated projects, the business case must comply with applicable capital programming and regulatory guidance.
· Project Sponsor:
· • Initiates the project and ensures a charter is prepared.
· • Owns the business case and benefits realisation.
· • Approves the Charter and any major changes.
· Project Manager:
· • Coordinates preparation and maintenance of the Charter.
· • Ensures alignment between the Charter, schedule, budget, and risk register.
· Capital Projects Office / PMO:
· • Owns this policy, the Charter template, and related guidance.
· • Provides quality review of Charters for Tier 1–3 projects.
· • Maintains the central repository for approved Charters and stage-gate records.
· Finance:
· • Reviews and validates project financials, funding sources, and contingency.
· • Confirms capitalisation and depreciation treatment.
· Legal / Compliance / Regulatory Affairs:
· • Identifies applicable legal, contractual, and regulatory requirements.
· • Reviews Charters for high-risk or externally funded projects as required.
Approved Charters and all subsequent revisions must be stored in the designated electronic document management system under the appropriate project record classification. The retention period for Charters is at least the life of the asset plus [X] years, or longer where required by regulation, funding agreements, or audit standards.
Internal audit, the PMO, and/or external assurance providers may periodically review a sample of projects to confirm that Charters exist, are approved at the correct level, and are consistent with supporting documentation (business case, risk register, contracts). Non-compliance may result in escalation to senior management and could delay funding approvals.
Any exceptions to this policy must be approved in writing by the [CFO / COO] and the Head of the Capital Projects Office. Approved exceptions must clearly document the rationale and any compensating controls.
This policy will be reviewed at least every [3] years, or sooner if there are significant changes to regulatory requirements, funding conditions, or the organisation's capital governance framework.
Project: East Wing Clinical Expansion Project
Organisation: Northside Health Group
Timeframe: January–February 2026
From: Sarah Patel, Executive Director Clinical Services <sarah.patel@northsidehealth.org>
To: Michael Green, Capital Projects Manager <michael.green@northsidehealth.org>
Cc: James Wong, CFO <james.wong@northsidehealth.org>; Capital Projects Office <cpo@northsidehealth.org>
Date: 14 January 2026
Subject: Initiation – East Wing Clinical Expansion Project Charter
Hi Michael,
As discussed at the Executive Committee, we have agreement in principle to progress the East Wing Clinical Expansion project through concept and business case. Can you please prepare a draft Project Charter using the standard template so that we can take it to the Capital Committee in February?
At a high level, we are looking to:
• Increase inpatient capacity on the East Wing by approximately 24 beds by FY27
• Improve isolation capability in line with current infection prevention standards
• Address the most critical building services issues (HVAC, medical gases) identified in the last condition assessment.
Indicative budget envelope from last year’s rolling capital plan was $18–22m, subject to business case. Target practical completion is Q4 FY27 to align with the commissioning of the new imaging equipment.
Please engage Clinical Operations (ICU, Medical Wards), Facilities & Engineering, Infection Prevention and Finance to refine scope, objectives, milestones and risks. I’m happy to act as Sponsor.
Thanks,
Sarah
From: Michael Green, Capital Projects Manager <michael.green@northsidehealth.org>
To: Sarah Patel, Executive Director Clinical Services <sarah.patel@northsidehealth.org>
Cc: James Wong, CFO; Capital Projects Office; Facilities Manager; Director Infection Prevention
Date: 23 January 2026
Subject: Draft Charter – East Wing Clinical Expansion
Hi Sarah and all,
Following our workshops last week, I’ve drafted the Project Charter. The full document is attached; below is a summary of the key fields for quick review.
1. Project Identification
· • Project Name: East Wing Clinical Expansion Project
· • Project ID / Code: EW-CLIN-EXP-26
· • Sponsoring Organisation / Business Unit: Clinical Services Division
· • Project Sponsor: Sarah Patel, Executive Director Clinical Services
· • Project Manager: Michael Green, Capital Projects Manager
· • Date of Charter: 23 January 2026
2. Strategic Context & Background
· • Drivers: Sustained 95%+ bed occupancy, requirement to provide additional isolation capacity post-pandemic, ageing building services in the East Wing, and alignment with the FY26–30 Strategic Clinical Services Plan.
· • Link to Strategy: Supports strategic objective 1.2 “Increase acute care capacity” and 3.1 “Strengthen infection prevention and control”.
3. Project Objectives & Success Criteria
· Proposed SMART objectives:
· • OBJ-01: Commission 24 additional inpatient beds on East Wing Level 5 by 31 December 2027.
· • OBJ-02: Deliver at least 8 new negative pressure isolation rooms compliant with current infection prevention guidelines.
· • OBJ-03: Reduce average bed occupancy in medical wards from 95% to ≤90% within 12 months of commissioning.
· • OBJ-04: Complete the project within an approved total Capex of $22m including contingency.
4. Scope (In / Out)
· In scope:
· • Refurbishment and reconfiguration of East Wing Levels 4 and 5, including structural alterations where required.
· • New and upgraded HVAC, medical gases, nurse call and electrical systems to support additional beds.
· • New staff support areas (clean/dirty utility, medication room, staff station, staff amenities).
· Out of scope:
· • Replacement of lifts beyond local lobby finishes.
· • Any works to the Emergency Department (managed under a separate ED Redevelopment project).
5. High-Level Requirements & Deliverables
· • DEL-01: Approved schematic and detailed design packages incorporating infection control and clinical workflow requirements.
· • DEL-02: Constructed and commissioned ward areas, including room data sheets and asset registers.
· • DEL-03: Updated clinical operating procedures and training for nursing and support staff.
6. Constraints & Assumptions
· Constraints:
· • Project total Capex must not exceed $22m including a 15% contingency.
· • Major construction activity to be undertaken while the hospital remains operational, with noisy works restricted to agreed windows.
· Assumptions:
· • Planning approval will be obtained by 30 November 2026.
· • Temporary decanting solutions for affected wards will be available on West Wing Levels 3 and 4.
7. Key Milestones
· • Concept approval – Capital Committee: 20 February 2026
· • Business case approval – Board: 30 June 2026
· • Design complete: 31 March 2027
· • Construction start: 1 July 2027
· • Practical completion / handover: 31 October 2028
8. Budget & Funding
· • Total estimated Capex: $21.5m (including 15% contingency).
· • Estimated ongoing Opex impact: +$3.2m p.a. (nursing, medical, support, utilities).
· • Funding sources: Combination of internal capital ($15m) and State Health Infrastructure Fund grant ($6.5m).
9. Initial Risks & Dependencies
· • R-01: Delay in planning approval could push construction start into 2028 (Impact: High; Probability: Medium).
· • R-02: Construction while operational may disrupt patient care if decant plans are inadequate (Impact: High; Probability: Medium).
· • Dependency on Imaging Equipment Upgrade project to coordinate services upgrades on East Wing Level 3.
10. Governance & Stakeholders
· • Sponsor: Sarah Patel.
· • Steering Committee: Sarah (Chair), James Wong (Finance), Director Nursing, Facilities Manager, Infection Prevention Lead, PMO representative.
· • Key stakeholders: ICU, Medical Wards, Allied Health, Facilities, ICT, Procurement, Infection Prevention, union reps.
Grateful for your feedback by COB 30 January so that we can finalise the Charter and include it in the Capital Committee papers.
Regards,
Michael
From: James Wong, Chief Financial Officer <james.wong@northsidehealth.org>
To: Michael Green, Capital Projects Manager <michael.green@northsidehealth.org>
Cc: Sarah Patel; Capital Projects Office; Financial Planning Manager
Date: 26 January 2026
Subject: RE: Draft Charter – East Wing Clinical Expansion
Hi Michael,
Thanks for the draft. Overall this looks solid and aligned with the rolling capital plan. A few finance-related comments for the Charter:
· • Please clarify in Section 8 that the $21.5m estimate includes escalation at 4% p.a. through to mid-2028.
· • Add an explicit assumption that the Health Infrastructure Fund grant agreement is executed by 30 September 2026.
· • Under risks, include a risk regarding cost escalation beyond current market assumptions and potential need to de-scope or seek further funding.
Subject to those changes, I’m comfortable with the financials and happy to sign the Charter as CFO delegate once it’s updated.
Regards,
James
From: Dr Emma Rossi, Director Infection Prevention <emma.rossi@northsidehealth.org>
To: Michael Green, Capital Projects Manager <michael.green@northsidehealth.org>
Cc: Sarah Patel; Director Nursing; Facilities Manager
Date: 27 January 2026
Subject: RE: Draft Charter – East Wing Clinical Expansion – Clinical Requirements
Hi Michael,
Thanks for including Infection Prevention early. From our perspective the Charter should explicitly reference the following in the high-level requirements:
· • Minimum of 8 negative pressure isolation rooms, preferably 10 if budget permits.
· • All multi-bed rooms to be redesigned as single rooms where practicable to support future outbreak management.
· • Inclusion of anterooms and appropriate donning/doffing areas for isolation rooms.
Please also add the current national infection prevention guidelines and the State Health design guidelines to the “Compliance & Standards” section so that it’s clear they are mandatory.
Happy to review the next version.
Regards,
Emma
From: Michael Green, Capital Projects Manager <michael.green@northsidehealth.org>
To: Sarah Patel, Executive Director Clinical Services <sarah.patel@northsidehealth.org>
Cc: James Wong; Dr Emma Rossi; Director Nursing; Facilities Manager; Capital Projects Office
Date: 2 February 2026
Subject: Final Charter – East Wing Clinical Expansion – For Signature
Hi Sarah and colleagues,
Thank you for the helpful feedback. I have incorporated all agreed changes into the Project Charter. Key updates include:
· • Clarified total Capex of $21.5m including 15% contingency and escalation assumptions.
· • Added grant execution assumption and a specific risk on construction cost escalation.
· • Strengthened infection prevention requirements (minimum 8 NP rooms, single-room preference, donning/doffing areas).
· • Expanded the list of applicable clinical and design guidelines in the Compliance & Standards section.
The approval table in Section 13 now lists: Sponsor (you), CFO delegate (James), Capital Committee Chair, and PMO Director. If you are comfortable, please review and sign the attached Charter electronically by 9 February so that we can submit the signed version with the February Capital Committee papers.
Regards,
Michael