1. Importance: The project needs to be important enough for senior management to justify setting up a unit outside of the routine structure of the organization.

2. Unique: Every project is unique. Even though the desired result may have been achieved somewhere else, each project has some unique elements.

3. One-time occurrence: A project is a one-time occurrence with a defined end result. The project can be divided into subtasks. These subtasks must be accomplished in order to achieve the project goals and must be controlled in terms of timing, cost, and scope.

4. Finite duration: There are clear dates of when the project must begin and end. Projects have life cycles that are slow in the beginning and progress to a buildup of size which eventually peaks. It then begins to decline and must end by the due date.

5. Interdependencies: Projects often interact with other projects. Most of the time, these interactions are seen when there is a competition for scarce resources between projects.

6. Resources: Projects typically have limited budgets for both personnel and other resources.

7. Conflict: Between limited resources and limited leadership roles in solving project problems, the project team is in almost constant conflict.

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