Writing Terms of Reference | Checklist & Templates (2024)

Table of Contents

Introduction Definitions (feel free to skip) Contents Get started Establishing the Purpose of the Terms of Reference Writing a clear statement of purpose Identifying who is involved Defining the Scope of the Terms of Reference Outlining the tasks to be completed Identifying the timeline Identifying Roles and Responsibilities Assigning roles and responsibilities to individuals or groups Establishing decision-making authority Establishing Key Performance Indicators Identifying the necessary criteria for successful completion Defining the metrics to measure performance Establishing a Schedule Identifying the deadlines for each task Establishing a timeline for completion Establishing a Budget Assessing the cost of the project Allocating resources Developing a Reporting Mechanism Defining the format and frequency of reports Identifying who should receive the reports Establishing a Process for Resolving Disputes Identifying potential conflicts Establishing a mechanism for resolving conflicts Finalizing the Terms of Reference Reviewing and revising the Terms of Reference Obtaining sign-off from all relevant stakeholders Reviewing and Revising the Terms of Reference as Needed Scheduling regular reviews of the Terms of Reference Identifying changes to the Terms of Reference Implementing any necessary revisions FAQ: Q: What is the difference between Terms of Reference and a contract? Example dispute Suing a Company for Breach of Contract Templates available (free to use) Links to get you started FAQs References

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Introduction

Creating terms of reference for any business or transaction is essential to provide clarity and direction for all parties involved. Not only will it help to ensure that roles and responsibilities are understood, but it can also protect those involved from potential disputes and misunderstandings. Moreover, having a set of terms of reference can ensure that the objectives of all parties are clearly defined, helping to reduce confusion and increase the chances of success. Finally, by having clear terms of reference in place, all parties are able to remain compliant with applicable law throughout the process.

Definitions (feel free to skip)

Stakeholder - A person or group with an interest in a particular project or outcome.
Terms of Reference - A document that outlines the purpose, scope, roles and responsibilities, key performance indicators, timeline, budget, reporting mechanism, and process for resolving disputes for a project.
Plain language - Clear, easy to understand language, without jargon or technical terms.
Concise - Short and to the point.
Ambiguity - Unclear or uncertain meaning.
Scope - The range of a project, including tasks, timeline, and objectives.
Roles and Responsibilities - The specific actions or duties that are assigned to each person or group involved in a project.
Decision-making authority - The power to make decisions on behalf of the project.
Key Performance Indicators - Metrics used to measure the performance of a project.
Schedule - A timeline of deadlines necessary to complete a project.
Budget - The amount of money allocated to a project.
Reporting mechanism - The format and frequency of reports on the progress of a project.
Resolving disputes - The process of resolving conflicts between stakeholders.

Establishing the Purpose of the Terms of Reference
Writing a clear statement of purpose
Identifying who is involved
Defining the Scope of the Terms of Reference
Outlining the tasks to be completed
Identifying the timeline
Identifying Roles and Responsibilities
Assigning roles and responsibilities to individuals or groups
Establishing decision-making authority
Establishing Key Performance Indicators
Identifying the necessary criteria for successful completion
Defining the metrics to measure performance
Establishing a Schedule
Identifying the deadlines for each task
Establishing a timeline for completion
Establishing a Budget
Assessing the cost of the project
Allocating resources
Developing a Reporting Mechanism
Defining the format and frequency of reports
Identifying who should receive the reports
Establishing a Process for Resolving Disputes
Identifying potential conflicts
Establishing a mechanism for resolving conflicts
Finalizing the Terms of Reference
Reviewing and revising the Terms of Reference
Obtaining sign-off from all relevant stakeholders
Reviewing and Revising the Terms of Reference as Needed
Scheduling regular reviews of the Terms of Reference
Identifying changes to the Terms of Reference
Implementing any necessary revisions

Get started

Establishing the Purpose of the Terms of Reference

Identify the project or task the Terms of Reference refer to, and the desired outcome
Determine the scope of the project or task and who will be involved
Consider the objectives, deliverables, timeline and budget
Draft an overview of the project or task that outlines these elements
Check with relevant stakeholders to ensure the overview is complete and accurate

You’ll know you can check this step off your list when you have a comprehensive overview of the project or task that includes the desired outcome, scope, objectives, deliverables, timeline and budget.

Writing a clear statement of purpose

Brainstorm the purpose of the Terms of Reference and write it down
Ask yourself questions such as: what is the purpose of this document, who is the intended audience, what are the expected outcomes and how will they be measured
Draft a statement of purpose that is concise and clear
Ensure that the statement of purpose is measurable and achievable
Check the statement of purpose against the list of questions used to brainstorm to make sure that all elements are covered
Once the statement of purpose is finalized, you can check this step off your list and move on to the next step.

Identifying who is involved

Identify who will be responsible for creating the Terms of Reference
Identify who will be responsible for reviewing the Terms of Reference
Identify who will be responsible for approving the Terms of Reference
Ensure all parties are aware of their roles and responsibilities
When all roles and responsibilities have been identified and all parties have been made aware of their roles, this step is complete and you can move on to the next step of defining the scope of the Terms of Reference.

Defining the Scope of the Terms of Reference

Identify the purpose and objectives of the project
Determine the expected outcomes of the project
Describe the geographic area, target population and any other relevant parameters of the project
Identify any assumptions that may impact the project
Describe the timeline for the project

You can check this step off your list when you have a clear description of the scope of the project that outlines the purpose, objectives, expected outcomes, parameters, assumptions and timeline of the project.

Outlining the tasks to be completed

List the tasks that need to be completed as part of the Terms of Reference
Consider any activities or deliverables that need to be included in the Terms of Reference
Ensure the tasks are achievable within the timeline and scope of the project
Identify any resources or personnel that need to be allocated in order to complete the tasks
When you have an accurate list of tasks, you can move on to the next step: Identifying the timeline.

Identifying the timeline

Establish a timeline for the project that outlines key milestones, including a start date, major deliverables, and the projected end date.
Consult with stakeholders to determine the feasibility of the timeline and make any necessary adjustments.
Confirm the timeline with the project team and document it in the Terms of Reference.
Once the timeline is finalized, the Terms of Reference can be completed and distributed.

Identifying Roles and Responsibilities

Identify the roles and responsibilities of each individual or group who will be involved in the project.
Describe each position, the tasks associated with that position, and any special qualifications that would be beneficial for the role.
Identify the roles and responsibilities of individuals or groups outside of the project, such as stakeholders, who may have a vested interested in the outcome of the project.
Outline the reporting structure for the project and specify who is responsible for providing progress reports and updates.
When all roles and responsibilities have been identified and assigned, the step is complete and the document can be checked off your list.

Assigning roles and responsibilities to individuals or groups

Assign specific roles and responsibilities to each individual or group
Create a list of tasks each individual or group needs to complete
Clearly define the scope of work and expectations for each individual or group
Ensure that all roles and responsibilities are agreed upon by all parties involved
Document the roles and responsibilities in the Terms of Reference
When all roles and responsibilities have been assigned, this step can be checked off the list.

Establishing decision-making authority

Establish a decision-making authority for the project.
Consider who has the authority to make decisions during the project.
Write down the decision-making authority in the Terms of Reference.
Check that the decision-making authority is clear and unambiguous to all parties involved in the project.
Acknowledge that the decision-making authority has the right to make decisions that override the contribution of any other party.
Confirm that the decision-making authority is accepted by all parties involved in the project.
When the decision-making authority is established and accepted, you can check this off your list and move on to the next step of establishing Key Performance Indicators.

Establishing Key Performance Indicators

Define and agree upon the KPIs that need to be tracked to measure the success of the project
List out the performance indicators that need to be monitored on a regular basis
Identify the criteria that will be used to assess progress on each performance indicator
Develop a system for tracking and reporting on the performance indicators
Agree upon the frequency of reporting on the performance indicators
When the KPIs have been defined and agreed upon, the step has been completed and you can move on to the next step.

Identifying the necessary criteria for successful completion

Brainstorm and identify the criteria that need to be met in order for the project or task to be considered successful
Consider any external factors or conditions that must be present for success
Identify the necessary resources required to complete the task
Develop a timeline for the completion of the task and any milestones within that timeline
Make a list of all the criteria that need to be met in order to ensure success
Once all criteria have been identified, review the list to ensure it is comprehensive and feasible
Once the criteria have been established and reviewed, you can move on to the next step: Defining the metrics to measure performance.

Defining the metrics to measure performance

List out the performance metrics that will be used to measure the success of the project
Decide what the goals are for each metric, such as a target number to reach or an acceptable range of performance
Identify how the metrics will be measured and tracked
Test the measurements to make sure they are accurate and valid
When the metrics are established, the step can be checked off the list and the next step can be started.

Establishing a Schedule

Establish a timeline for the project, allowing for flexibility and adjustment as needed
Identify key milestones and deadlines for each task
Prioritize tasks and schedule them according to importance and urgency
Determine the resources needed for each task and the time required to complete it
Take into account external factors such as holidays, working hours, and other commitments
Consider the availability of the team members involved
Create a timeline for the project and assign tasks to each team member
Regularly update the timeline to ensure that tasks are completed on schedule
When the timeline is complete, you can check off this step and move on to the next.

Identifying the deadlines for each task

Identify and document the timeline of tasks involved in the project.
Set realistic, achievable deadlines based on the scope of the project.
Ensure all stakeholders are aware of the deadlines and are in agreement with them.
Create a timeline document that can be shared with stakeholders to track progress.
Assign ownership of tasks and record the responsible party in the timeline document.
Monitor progress and adjust deadlines as needed.
Once all deadlines are set, check this off your list and move on to the next step.

Establishing a timeline for completion

Set out an overall timeline for the project, including when the project will start and finish
Map out the individual tasks that need to be completed and set out deadlines for each
Ensure that the timeline is realistic and achievable, taking into account the availability of resources
Agree on a timeline with the other stakeholders, and document the timeline in the Terms of Reference
Check off this step when the timeline has been agreed and documented in the Terms of Reference.

Establishing a Budget

Estimate the budget for the project
Identify the resources available to complete the project within the given budget
Determine if the resources are sufficient to complete the project within the given timeline
Consider the need to hire additional resources, if necessary
Compare the project costs against the expected benefits
Once the budget is established, document it in the Terms of Reference
Make sure the budget is approved by all stakeholders
When the budget is approved and documented, this step is complete and you can move on to the next step.

Assessing the cost of the project

Create an accurate estimate of the financial resources needed for the project
Consult with stakeholders and subject matter experts to determine the potential cost of the project
Take into account the cost of the personnel, materials, and other resources that will be necessary to complete the project
Identify any potential risks to the project and estimate the cost of risk mitigation
Establish a timeline with approximate costs associated with each milestone
When you have a comprehensive cost assessment, you can check this step off your list and move on to allocating resources.

Allocating resources

Identify the resources needed for the project and determine the cost associated with each.
Consider recruiting additional staff, subcontracting, and/or outsourcing.
Create a budget for the project and confirm that it is approved by all parties.
Once the resources have been allocated, you can move on to developing a reporting mechanism.

Developing a Reporting Mechanism

Identify the information that needs to be reported and the stakeholders that need to receive it
Outline the format that the report should take and how regularly it should be issued
Establish the process for collecting, analyzing, and distributing the report
Ensure the report is compliant with any existing laws and regulations
Set up a timeline for delivering the report
Determine what data needs to be tracked and how it should be collected
When all the above steps have been completed, you can move on to the next step of defining the format and frequency of reports.

Defining the format and frequency of reports

Determine how often reports should be generated (daily, weekly, monthly, etc.)
Decide the format of the reports (PDF, Word document, Excel spreadsheet, etc.)
Outline the specific information that needs to be included in each report
Establish a timeline and frequency for when reports should be generated
When all the decisions are made, document them in the Terms of Reference

Once all of the decisions are made and documented in the Terms of Reference, you can move on to the next step of Identifying who should receive the reports.

Identifying who should receive the reports

Identify the key stakeholders who should receive reports
Prepare a list of the stakeholders and their contact information
Confirm the list with the key stakeholders
Check off this step when all stakeholders agree to the list of those who will receive reports.

Establishing a Process for Resolving Disputes

Establish a process for resolving disputes. This should include protocols for addressing potential conflicts, the methods of communication to be used, and the timescale for resolving any disputes.
Identify who should be included in the dispute resolution process, such as stakeholders and representatives of the parties involved.
Consider what methods should be used to communicate during the dispute resolution process, such as meetings and email.
Decide on a timeline for resolving any disputes, such as a set amount of time for each party to respond before a decision is made.
Draft a document outlining the dispute resolution process.
Once the document is drafted, review and revise as needed.
When the document is finalised, distribute it to all relevant parties.

You’ll know when you can check this off your list and move on to the next step when the document outlining the dispute resolution process has been reviewed, revised, and distributed to all relevant parties.

Identifying potential conflicts

Review existing documents such as the charter, bylaws, and mission statement to identify any potential conflicts of interest
Brainstorm with the relevant stakeholders to identify any issues or potential conflicts that may arise
Consider the roles of each stakeholder and identify any areas of overlap between them that could lead to potential conflicts
When all potential conflicts have been identified, discuss and agree on how to handle them
Document the agreed upon plan for handling potential conflicts in the Terms of Reference
Once all potential conflicts have been identified and a plan is in place to handle them, this step can be marked as complete.

Establishing a mechanism for resolving conflicts

Agree on a process for resolving disputes, such as through negotiations or a third-party mediator
Decide how decisions regarding the resolution of conflicts will be made
Outline how the parties will keep informed of the process of resolving conflicts
Include possible consequences for failure to comply with the agreed resolution
Determine the process for modifying the mechanism for resolving conflicts
When all parties have agreed on the mechanism for resolving conflicts, this step can be checked off and the Terms of Reference can be finalized.

Finalizing the Terms of Reference

Carefully review the draft Terms of Reference
Ensure that all the necessary considerations have been taken into account
Make any necessary revisions and additions
Make sure all stakeholders agree on the content and format
Obtain the necessary approvals
Determine the final format for the document
Finalize the Terms of Reference
You will know you have completed this step when you have a finalized version of the Terms of Reference that has been approved by all stakeholders.

Reviewing and revising the Terms of Reference

Review the Terms of Reference for accuracy and completeness
Ensure that all requirements, objectives, and deliverables are clearly stated
Ensure that all stakeholders are represented and their roles and responsibilities are adequately defined
Check that the deliverables and timelines are realistic
Ensure that the Terms of Reference is aligned with the overall project plan
Make any necessary revisions
Obtain sign off from all relevant stakeholders
Once all revisions are complete and the Terms of Reference are signed off, you can move on to the next step.

Obtaining sign-off from all relevant stakeholders

Identify all stakeholders who need to approve the document and make sure they are included in the review process
Contact each stakeholder and provide them with the Terms of Reference document
Explain the importance of their input and the role they play in the project
Follow up with each stakeholder to ensure they have received the document and understand their role
Request a signed approval of the Terms of Reference from each stakeholder
Once all stakeholders have signed off, you can move on to the next step.

Reviewing and Revising the Terms of Reference as Needed

Review the Terms of Reference document and ensure that all the requirements have been met
Consult with relevant stakeholders to identify any areas that need to be changed or updated
Revise the document as needed to reflect any changes
Once all changes have been made, you can check this step off the list and move on to the next step.

Scheduling regular reviews of the Terms of Reference

Set a timeline for reviews of the Terms of Reference with clear, realistic goals
Determine how often the Terms of Reference should be reviewed (eg. annually)
Assign responsibility for reviews to a specific individual or team
Make sure to set reminders or notifications to ensure that the Terms of Reference are reviewed on time
After each review, update the Terms of Reference, if needed
Once the timeline and responsibilities have been determined and set in place, you will know that you can move on to the next step.

Identifying changes to the Terms of Reference

Review the Terms of Reference regularly and identify any changes that need to be made.
Consider any feedback from stakeholders, the business requirements, any changes to the project scope or timeline, and any changes in the external environment that may have an impact on the project.
Create a list of changes that need to be made, if any.
Once you have identified the changes that need to be made, you can check this off your list and move on to the next step.

Implementing any necessary revisions

Review the changes to the Terms of Reference identified in the previous step
Decide whether the changes should be implemented or not
If changes should be implemented, make the necessary revisions to the Terms of Reference
Have other stakeholders review the revised Terms of Reference
Make any necessary modifications based on the review of the revised Terms of Reference
Once the revised Terms of Reference have been approved, finalize the document
You will know that you have completed this step when the revised Terms of Reference have been finalized and approved by all stakeholders.

FAQ:

Q: What is the difference between Terms of Reference and a contract?

Asked by Ariana on March 4th, 2022.
A: A contract is legally binding document, whereas Terms of Reference (ToR) is a document providing details and directions for a project or an appointed body. A contract outlines obligations and expectations of each party, and what will happen in the event that one or both parties do not comply. On the other hand, ToR outlines the objectives, scope and outcomes of a project or body, and can be used as a tool to ensure that all stakeholders are on the same page.

Example dispute

Suing a Company for Breach of Contract

Identifying and citing the relevant terms of reference (TOR) in the contract
Establishing that the company has breached the agreement by not performing their obligations as defined by the TOR
Demonstrating the financial or other losses incurred by the plaintiff as a result of the breach
Seeking an injunction or other court order requiring the defendant to adhere to the TOR
Seeking damages or other financial remedies for the losses incurred by the plaintiff as a result of the breach
Seeking legal costs associated with bringing the suit and any appeals if necessary

Templates available (free to use)

Aim Terms Of Reference For Nomination Committee
Aim Terms Of Reference For Remuneration Committee
Audit And Risk Committee Terms Of Reference Aim Listed Company
Audit Committee Terms Of Reference Aim Listed Company
Executive Summary For Remuneration Committee Of Premium Listed Companies For Tax Year Before 2019 Terms Of Reference
Executive Summary For The Audit Committee Of Premium Listed Companies For Tax Year 2019 And Beyond Terms Of Reference
Executive Summary For The Nomination Committee Of Premium Listed Compaines Tax Year 2019 And Beyond Terms Of Reference
Icc Arbitration 2012 2017 2021 Rules Terms Of Reference With Drafting Notes
Renumeration Committee Executive Summary For Premium Listed Companies Terms Of Reference For Payment
Risk Committee Terms Of Reference Aim Listed Company
Risk Committee Terms Of Reference Premium Listed Company

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Writing Terms of Reference | Checklist & Templates (2024)

FAQs

How do you write the terms of reference? ›

Context / Background to the assignment.
Description of the assignment (Objectives and.
Results)
Context / Background to the assignment.
Issues to be studied / Methodology.
Work plan and time schedule.
Expertise required.
Reporting requirements.

More items...

What should a terms of reference document include? ›

The terms of reference (ToR) document defines all aspects of how a consultant or a team will conduct an evaluation. It defines the objectives and the scope of the evaluation, outlines the responsibilities of the consultant or team, and provides a clear description of the resources available to conduct the study.

What is the difference between terms of reference and project charter? ›

This article describes a TOR containing detailed definitions, while a project charter has high-level requirements, assumptions, constraints and descriptions as well as a budget summary without detail, and a milestone-only schedule.

See Details ›

What does a good term of reference look like? ›

It should outline the specific objectives of the committee or purpose to be achieved including requirements under governing legislation. Responsibilities of the [name] Committee: This part of the TOR specifies how the purpose of the committee is to be met.

Get More Info Here ›

How do you write a professional reference template? ›

Key Points To Include in a Reference

Job title.
Salary.
Your relationship to the candidate.
Length of employment.
Roles and responsibilities.
Strengths and achievements.
Professional conduct.
Examples of good performance.

More items...

What is the key information required to be filled in the Terms of Reference ToR? ›

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.

Learn More Now ›

What is the difference between Terms of Reference and RFP? ›

ToR is a document that outlines the requirements for a project, while RFP is a document inviting proposals from potential vendors to meet those requirements.

Find Out More ›

How do I create a reference list template? ›

5. Format the list

The reference's full name.
Their official title or position.
The name of the company they work for.
The company's address.
Their best phone number.
Their best email to contact them.
A brief description of your relationship to the reference, including where and when you worked together.

Jun 20, 2023

What is an example of when you would use a template? ›

If you often create documents based on the same content, you might benefit from using file templates. A file template can be a document of any type with the formatting or content you would like to reuse. For example, you could create a template document with your letterhead.

How do you reference a template in Word? ›

To insert a citation in the text go to the 'References' tab on the ribbon and click on 'Insert Citation' and 'Add new source'. Select the 'Type of source' and fill in the boxes. Add all the citations to your document. When you have finished, go to the end of your document and click on the 'Bibliography' option.