Terms of reference

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A Terms Of Reference is a document which describes the purpose and structure of a project. Otherwise known as a TOR or a Project Charter, the "Terms of Reference" is created during the Initiation Phase of the Project Management Life Cycle.

Creating a detailed Terms of Reference is critical to the success of the project, as it defines the project:

• 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)

The Terms of Reference sets out a roadmap for the project. It gives the project team a clear path for the progression of the project, by stating what needs to be achieved, by whom and when. The project team must then create a suite of deliverables which conform to the requirements, scope and constraints set out in this document.

The Terms of Reference is created immediately after the approval of a project Business Case. It is documented by the Project Manager and presented to the Project Sponsor for approval. Once approved, 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.