What is Terms of Reference (ToR)?

Terms of Reference (ToR) provide a statement of the proposed project’s background, purpose, and objectives. A ToR template includes a range of criteria that are necessary for strategic project management decision-making. In addition, this document defines the activities, risks, budget, and expertise related to the project.

The Terms of Reference (ToR) or Request for Proposal (RFP) are an explicit statement of the resources, roles and responsibilities of the evaluators and the evaluation commissioner or manager including:

1. why and for whom the evaluation is being done;
2. what it intends to accomplish;
3. how it will be accomplished;
4. who will be involved in the evaluation; and,
5. when milestones need to be reached including when the evaluation needs to be completed.

In project management, TOR is a strategy-level document that describes the expected deliverables, who is responsible for each deliverable, and the timeline in which they should be completed. The ToR states the planned activities, typical inputs and outputs, project budget, working schedules, and job descriptions. It is used to evaluate the performance of the project team, contractors, consultants, experts, and other project stakeholders.

What is the purpose of TOR?

The purpose of the ToR is to specify the amount and type of work to accomplish the project. In addition, it is a governance document that establishes and determines the relationships between all project stakeholders. The Terms of Reference document is developed once a project has been identified, defined, and planned.

The ToR of a project provides a clear description of the following critical information:

• The rationale behind undertaking the project.
• The proposed methodology of project management, along with work plans and activity schedules.
• The expected resource requirements, primarily regarding personnel.
• Reporting rules and requirements.

For an internal evaluation - carried out by staff of the organization - the ToR is often called the 'evaluation brief' or the 'evaluation agreement'. Most of the elements of a formal ToR or TFP for external evaluators are relevant to be included in an internal evaluation brief/agreement.

In addition to the specifics about the project or program and its context, the evaluation –the purpose, scope, key evaluation questions and evaluation methodology (or how they should be developed) – the ToR / RFP should also include reporting requirements, milestones or deliverables, time frames, and relevant contractual requirements.

What's included in the ToR?

While the ToR or RFP of any evaluation process will need to be tailored to the particulars of that study and follow the requirements of the organization, there are elements which all ToRs / RFPs should include:

• Background
• Purpose/objectives/rationale for the evaluation
• Intended user(s) and use(s) of the evaluation
• Key evaluation questions
• The principles and approach that will guide the evaluation
• Methodology
• Roles and responsibilities of different actors
• Reporting requirements (see immediately below)
• Timeline and milestones
• Any specific requirements

Some organizations will include an indicative or ceiling budget.

The reporting requirements for the evaluation (referred to above as section 8 in a ToR) may include:

• The desired format(s) (such oral, written, video, etc.)
• Dissemination materials (such as summary, briefs, presentation materials, newsletter, etc.)
• Intended audience(s)
• Content areas
• Desired length of the report
• Whether the report should include specific recommendations
• Whether the data sets should be returned such as completed questionnaires, surveys, interview notes and tapes, etc.)
• Mode of delivery
• Any specific restrictions or needed permissions to publish information from or based on the evaluation

What it involves?

The ToR / RFP should be drafted before the evaluation starts. Consultants may be involved in further refining the evaluation design but the evaluation commissioner has to ensure that the ToR specifies what the evaluation needs to accomplish and what is expected from the evaluators. It is important, as part of the decision making processes, to agree on who needs to provide direct input, review and sign-off the ToR before it is released.

The following steps prepared information needed for the ToR:

• Decide whether the evaluation will be conducted internally, externally, or by a mixed team of evaluators. The ToR should include all the information external evaluators need to decide if they will bid for the work.
• Determine the selection criteria for the external evaluator(s). Among the range of evaluator qualities, the ToR should be clear which qualities are ‘desired’ and which are ‘essential’. These will serve as criteria to support a transparent process for selecting the most suitable consultant(s). Both the criteria and the process for selection of the external evaluator(s) should be specified in the ToR.
• Clarify whether the evaluation design will be developed as part of the ToR, as the first stage of the evaluation, or as a separate project. There are two basic scenarios for addressing the evaluation methodology in the ToR:

(1)  The ToR specifies a particular evaluation methodology that needs to be used and the evaluator competencies can be specified accordingly; or

(2) The ToR states that the first task of the external evaluator(s) is to design the evaluation and select an appropriate methodology, in which case it is helpful, at least, to articulate some values and/or principles that need to be upheld in the evaluation process.

• Draft the ToR with the input from relevant staff
• Obtain feedback from key stakeholders
• Obtain sign-off from senior management, as per the organization's specific requirements

The ToR / RFP:

• becomes a free-standing, public document
• can be used as the basis for developing the contract with the external evaluator(s)
• can be used to support discussions with primary evaluation users about their information needs

Template - Develop the Terms of Reference (ToR)

You can use a template in the following PDF link to write the ToR for your evaluation:  

Download: ToR for IT solution

Wrapping Up

The Terms of Reference is one of the most important documents that should be considered during the project management process. It defines the purpose, scope, deliverables, and timelines for the project, and it holds the stakeholders accountable for their deliverables.