PID - The PRINCE2 Project Contract
November 2023

PID — The PRINCE2 Project Contract

Before mobilising a full project team and committing significant resources, the organisation needs to establish the project's direction and governance in a single, comprehensive document. In PRINCE2, this is the Project Initiation Document — the PID.

The PID as Contract

In PRINCE2, the PID forms the contract between the Project Manager and the Project Board. It establishes what has been agreed before delivery begins — what the project will deliver, how it will be managed, who is responsible for what, and how the project relates to the broader organisational strategy.

Both sides have obligations under this "contract": the Project Manager commits to delivering within the agreed tolerances; the Project Board commits to providing the agreed support and making decisions through the defined governance process.

The PID vs. the Project Brief

The Project Brief is a one-time approval document produced during Starting Up — once the initiation stage begins, the Brief is superseded by the PID. The PID is different in one crucial respect: it is a living document. It is updated and re-approved at every stage boundary as the project's plans, risks, and business case evolve.

A PID that hasn't been reviewed since initiation is effectively stale. The stage boundary review process exists specifically to keep the PID current — and to ensure the Project Board is always working from an accurate baseline.

What the PID Contains

The PID incorporates the full detail developed during initiation:

Download a PID template from the PRINCE2 Templates page.