Question

Reference project / activity

Answer 1

Terms of Reference (TOR) are a strategy-level document that defines the tasks and duties required of a project contractor, and highlights project background and objectives at high level. The document also states the planned activities, expected inputs and outputs, project budget, working schedules, and job descriptions. It is used to judge about the performance of contractors, consultants, experts, and other project stakeholders.

The purpose of TOR is to specify the amount and type of work to be accomplished by the project. It is a governance document that establishes and determines the relationships between all project stakeholders. Terms of Reference are developed once a project has been identified, defined and planned.

TOR of a project provides a clear description of the following critical information:

The rationale behind undertaking the projectThe proposed methodology of project management along with work plans and activity schedulesThe expected resource requirements, primarily regarding personnelReporting rules and requirements

Content of TOR

The development of Project Terms of Reference is required for making the decision on whether or not to allocate necessary funds to a proposed project. It is the result of the project proposal process, and TOR serves as the primary report of this process. TOR is usually required for:

Pre-feasibility and feasibility analysesAppraisal activityImplementation contracts designing and monitoringEvaluation studiesReporting and auditOther advisory work required at any project stage

Considering the listed items, the content of Project Terms of Reference should include business-critical information necessary for starting, implementing and monitoring project activities. Meanwhile, the exact content of TOR varies from project to project and significantly depends upon the scope of a proposed project.

A generic content format of Project Terms of Reference is suggested below:

Project BackgroundProject ObjectivesIssues to be explored and analyzed against certain criteriaImplementation Methodology to be appliedExpertise requiredReporting requirementsWork plan, including activity schedules