Preparation of Terms of Reference (TORs) Lily Uy Hale Financial Agent Workshop April 23-24, 2003
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1 Preparation of Terms of Reference (TORs) Lily Uy Hale Financial Agent Workshop April 23-24, 2003
2 What is a TOR? A key document which describes the terms and conditions of a task to be performed; It sets out the working relationship between the parties and communicates the mode for undertaking the assignment; It lays out the responsibilities of the parties and the expected deliverables of the assignment.
3 Objectives of a TOR It ensures the following : That a specific task is carried out as outlined in the TOR; That the consultants undertaking the task focus on the major issues and the most serious likely impacts of the task; That the task is undertaken within the timeframe planned and within the budget allocated;
4 Objectives of a TOR- Cont. Helps reduce the risk of unnecessary extra work, delays and additional expenses; Helps reduce the risk of ambiguities during the preparation of proposals, contract negotiation and execution of services.
5 Contents of a TOR There are no universal formats for TOR which will be suitable for every task; however, there are general rules which should be observed when preparing TORs; The TOR should commence with a brief description of the program or project, scope of work, and objectives of the task; Background section should provide basic data relevant to the proposed tasks;
6 Contents of a TOR cont. A brief description of the institutions that are to be involved; composition of the team to undertake the task; Timeframe for task implementation: expected completion date for the assigned tasks; Budget allocation: major financiers, counterpart funding and/or man-months estimated to accomplish the task Reporting requirement and timing of submission of the reports: expected deliverables
7 Consultant services Studies Missions Technical Assistance Individual Firm Types of TOR
8 General Outline of a TOR (outline could vary depending on the type of task or study to be performed) 1. Background: It summarizes the main features of the project and describes the general purpose of the assignment. In particular, it should include: a) General statement as to why the need is required; b) Previous and current issues; c) How the proposed task fits into the sector or project.
9 General Outline of a TOR - cont. 2. Objectives: Clear definition of the purpose of the proposed task and expected output for the assignment.
10 General Outline of a TOR - cont 3. Scope of Work: Describes in detail all main activities to be conducted by addressing the following issues: a) Areas of focus and coverage for the task b) Issues to address c) Nature of assignment
11 General Outline of a TOR cont. 4. Implementation Timeframe: clearly states the allotted timeframe for the proposed assignment; consequence for any variance from the planned timeframe; 5. Outputs: expected deliverables, including the preparation of a Work Plan for the proposed task; types of report to be submitted; for example, need for inception report, interim reports and final completion reports;
12 General Outline of a TOR - cont 6. Reporting requirements: clearly indicating the stages for reporting, who is responsible for the reporting and timing for the submission of the reports; 7. Team composition: qualifications and roles and responsibilities of each team member, position descriptions, etc. 8. Duration of Contract or Service: expected commencement and completion of the proposed tasks;
13 General Outline of a TOR - cont 9. Mode of Payment/Budget allocation for the proposed task : For a firm or for soliciting proposals for a task, one may include the man-months needed for the task and have the potential bidders proposed a budget; For individual consultants with a fixed budget, amount of budget maybe specified together with the timing of payment which could be based on stages of work, or payment upon submission of reports.
14 Common problems of a bad TOR Objective is not clear Scope of work is not comprehensive No clear description of expected output No implementation timeframe or expected date of completion Mode of payment or budget is not clear Responsibilities for task team member are not specified. * See Version 1 reference of a poorly written TOR ** See Version 2 reference of a well-prepared TOR
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