The definitions of Terms of Reference (TOR) obtained from the World Wide Web include the following:
- Terms of reference sets out the parameters within which authority is delegated to sub committees, standing groups, advisory panels, etc., and specify how the group is accountable (www.diycommitteeguide.org).
- Terms of reference, abbreviated as TOR, describe the purpose and structure of a project, committee, meeting, negotiation, etc. When used with regard to a project, they can also be known as a project charter (en.wikipedia.org/wiki/Terms_of_reference).
- The document drawn up by the contracting authority setting out its requirements and/or objectives in respect of the provision of services, specifying, where relevant, the methods and resources to be used and/or results to be achieved (SER) – (ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/documents/a1_glossary_en.doc)
- A specification of a team member’s responsibilities and authority within a project (berr.gov.uk/aboutus/corporate/ projectcentre/glossary/ page10895.html).
- TOR is World Bank parlance referring to the preparation of a description of the assignment for consultants to be selected by borrowers following World Bank procedures (www.rmauduit.com/glossary-t.html).
- Written requirements governing EIA implementation, consultations to be held, data to be produced and form/contents of the EIA report. Often produced as an output from scoping (eia.unu.edu/course/).
- Define the scope of the Committee’s responsibilities. Committees may also have duties to monitor specific functions of the organisation and/or advise other committees on them through recommendations and reports (gold.ac.uk/committee-servicing/terms-concepts/).
- Describes a written document that outlines the purpose and scope of the evaluation to be undertaken including the resources required, the time frame and reporting requirements (www.cop-mfdr-africa.org/forum/attachment/download).
- Terms of reference describes the purpose and structure of a project, committee, meeting, negotiation, or any similar collection of people who have agreed to work together to accomplish a shared goal. The terms of reference of a project are often referred to as the project charter (http://en.wikipedia.org/wiki/Terms_of_reference).
Terms of reference can therefore be described as the obligation and activity that constrain individuals or persons to follow and strictly comply with requirements describing the way to follow in order to achieve some defined goals or set of objectives. Terms of reference is like a brief given by a client to his or her representative (that is, professional), limiting his role to a particular type of service. As an Estate Surveyor and Valuer, if a client gives an instruction to value his/her property for insurance purpose, then the Valuer must not go outside that purpose because the term of reference stipulates valuing it just for insurance purpose. Furthermore, if a client gives an Estate Surveyor and Valuer a property just for letting, then the term of reference has been clearly defined.
A boss can also give terms of reference to his workers stating the scope of work to be done and how to do it. This can also be described as the scope of responsibilities to be carried out strictly on instruction. These responsibilities could be an investigation on any matter, project, etc. Therefore, ‘Terms of Reference’ provides a documented basis for making future decisions and for clear understanding of the scope of work. The terms of reference sets out a road map to be followed; it gives a clear path for task progression, by stating what needs to be achieved, by whom and when. There must then be a set of deliverables which conform to the requirements, scope and constraints set out in the document. They should also provide a documented basis for making future decisions and for confirming or developing a common understanding of the scope among stakeholders. In order to meet these criteria, success factors/risks and restraints should be fundamental keys.
Creating detailed terms of reference is critical, as they define the:
- Vision, objectives, scope and deliverables (i.e. what has to be achieved)
- Stakeholders, roles and responsibilities (i.e. who will take part in it)
- Resource, financial and quality plans (i.e. how it will be achieved)
- Work breakdown structure and schedule (i.e. when it will be achieved)
- Success factors/risks and restraints.
Terms of references in a project lifecycle
The ‘terms of reference’ are created during the earlier stages of project management, immediately after the approval of a project business. They are documented by the Project Manager and presented to the project sponsor or sponsors for approval. Once the terms have been approved, the members of the project team have a clear definition of the scope of the project. They will then be ready to progress with the creation of the remaining project deliverables.
This phrase is often used when describing the task that has been assigned to a consultant or advisor. As such, the consultant or advisor may be engaged via a contract with general terms of engagement that also incorporates the terms of reference that specifically describe the consultant’s task (http://en.wikipedia.org/wiki/Terms_of_reference, 2017).
