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Project Terms of Reference

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PROJECT TERMS OF REFERENCE

This Project Terms of Reference (the Agreement) is entered into as of by and between:

Client Name:

Contractor Name:

WHEREAS

WHEREAS, Client has requested that Contractor provide professional services for the project titled (the Project), and Contractor represents that it has the requisite experience, personnel and resources to perform such services;

WHEREAS, the parties desire to set forth the objectives, scope, deliverables, schedule and terms under which Contractor will perform work for the Project.

SCOPE OF WORK

Contractor shall perform the services described below in a professional and workmanlike manner in accordance with industry standards.

MILESTONES AND SCHEDULE

The parties agree the Project will be delivered according to the milestones set forth below. Each milestone is subject to acceptance in accordance with the Acceptance Criteria section.

PAYMENT TERMS

Client shall pay Contractor for performance of the Scope of Work in accordance with the following terms.

TERM AND TERMINATION

This Agreement commences on and, unless earlier terminated in accordance with this Agreement, will continue until .

CONFIDENTIALITY

Each party acknowledges that in the course of performance it may receive confidential or proprietary information of the other party. Recipient will use such Confidential Information solely for the purpose of performing under this Agreement and will protect it with at least the same degree of care it uses to protect its own confidential information, but in no event less than reasonable care.

INTELLECTUAL PROPERTY

Unless otherwise agreed in writing, all intellectual property rights, deliverables, and work products developed specifically for Client under this Agreement shall be the property of upon full payment of all fees due. Contractor retains ownership of its pre-existing methodologies, tools and background technology.

REPORTING AND ACCEPTANCE

CHANGE CONTROL

All changes to scope, schedule or cost shall be managed through a written change order executed by authorized representatives of both parties prior to implementation. Contractor will not perform work outside the Scope of Work without such executed change order.

INDEMNIFICATION AND LIMITATION OF LIABILITY

Each party shall indemnify, defend and hold harmless the other party from third-party claims arising from the indemnifying party's gross negligence or willful misconduct in connection with this Agreement. Except for liability arising from gross negligence, willful misconduct or indemnification obligations, neither party's aggregate liability shall exceed the total fees paid under this Agreement for the Project.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of without regard to its conflict of law principles.

ENTIRE AGREEMENT

This Agreement, including any attached schedules and executed change orders, constitutes the entire agreement between the parties with respect to the Project and supersedes all prior and contemporaneous agreements, proposals and communications, whether written or oral. No amendment to this Agreement is effective unless in writing and signed by authorized representatives of both parties.

MISCELLANEOUS PROVISIONS

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions will remain in full force and effect. Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party, except that Client may assign to an affiliate or successor by operation of law.

Client:

By:

Date:

Contractor:

By:

Date:

Enter text✕

What a Project Terms of Reference Is and why it matters

A Project Terms of Reference (Terms of Reference or TOR) is a formal document that defines a project's objectives, scope, deliverables, stakeholders, governance, schedule, and acceptance criteria. It sets the baseline for project authorization and guides decision‑making across planning, execution, and handover. A clear TOR reduces ambiguity, aligns sponsors and teams on responsibilities, and provides the contractual framework used by vendors, contractors, and internal stakeholders throughout the project lifecycle.

Why a concise Terms of Reference improves outcomes

A well‑drafted TOR clarifies scope, assigns responsibilities, and defines success criteria so teams avoid scope creep, speed approvals, and limit disputes. It is a governance document that supports accountability and makes later contract and procurement steps simpler.

Why a concise Terms of Reference improves outcomes

Who typically prepares and relies on a Project Terms of Reference

Use the TOR as the authoritative reference during vendor selection, contract negotiation, deliverable acceptance, and project closeout.

  • Project sponsors and steering committees who set objectives and approve scope.
  • Program or project managers who translate the TOR into detailed plans and controls.
  • Procurement and legal teams who convert TOR requirements into RFPs and contracts.

Stepwise process to complete and approve the Terms of Reference

Follow these sequential steps to prepare, review, and finalize the TOR so it can be used for procurement and project initiation.

  • 01
    Draft: Compile objectives, scope, deliverables, and stakeholders.
  • 02
    Internal Review: Legal, finance, and risk teams confirm requirements and constraints.
  • 03
    Sponsor Approval: Sponsor or steering committee signs off on scope and budget.
  • 04
    Distribution: Share final TOR with vendors, procurement, and project team.

Typical digital workflow settings when issuing a TOR

Configure a digital workflow that mirrors review steps, enforces signers, and captures an audit trail for compliance and procurement records.

Field Configuration
Approval Order Sequential reviewers, final sponsor signer
Authentication Email + optional SMS or ID verification
Notifications Automated reminders at set intervals
Record Retention Store signed copy with audit trail

How electronic completion and distribution typically flow

A straightforward eSubmission workflow reduces turnaround and preserves an evidentiary record for approvals and audits.

  • Upload: Sender uploads TOR and maps signature fields.
  • Assign: Add signer emails and set signing order.
  • Authenticate: Signers verify identity by chosen method.
  • Archive: Signed copy and audit trail are saved.

Essential sections every professional TOR should include

Include these elements to ensure the TOR is actionable, auditable, and suitable for procurement and contract drafting.

Objectives

Clear statement of project goals, measurable outcomes, and strategic fit so acceptance criteria directly map to deliverables and performance metrics.

Scope

Detailed list of included work, excluded items, assumptions, and interfaces to avoid ambiguity and limit scope creep during execution.

Deliverables

Specific deliverables, formats, delivery dates, and acceptance tests so vendors and teams know exactly what constitutes completion.

Governance

Roles, approval authorities, escalation paths, and meeting cadence that define decision rights throughout the project lifecycle.

Schedule

High‑level timeline with milestones, dependencies, and critical path items to align expectations and procurement timelines.

Budget & Risks

Authorized budget, cost assumptions, and key risks with mitigation actions to support contract terms and contingency planning.

Security, compliance, and recordkeeping essentials for TOR documents

Encryption: TLS 1.2/1.3 in transit; AES‑256 at rest
Audit Trail: Immutable timestamped signing history
Access Controls: Role‑based permissions and SSO
Regulatory Controls: ESIGN, UETA compliance
Industry Certifications: SOC 2 Type II; ISO 27001
Privacy Frameworks: GDPR, CCPA compliance options

Key legal and operational risks of an incomplete or incorrect TOR

Scope disputes: Contract change orders and delays
Budget overruns: Unapproved work increases cost
Procurement delays: Missing approvals block awards
Regulatory exposure: Noncompliance with procurement rules
Contractual liability: Ambiguous deliverables risk claims
Data retention gaps: Missing records hamper audits

Common pitfalls when preparing a Project Terms of Reference

  • Vague deliverable descriptions that leave acceptance subjective and invite disputes during handover.
  • Failure to list excluded work, which causes assumptions and scope creep during execution.
  • Missing or inconsistent signatory authority that delays approvals and invalidates procurement steps.
  • Using informal dates or formats that create ambiguity in milestones and contractual deadlines.

Key deadlines and timing considerations related to a TOR

Certain timing obligations and record deadlines affect procurement, tax reporting, and employment documentation tied to a project.

TOR Effective Date:

Enter as MM/DD/YYYY; governs when obligations begin

Vendor Proposal Deadline:

Set a firm submission date and time for fair procurement

Contract Award Notice:

Notify unsuccessful vendors within set procurement window

Record Retention Start:

Begin retention from signature or completion date

Tax Reporting Windows:

Follow IRS deadlines for any payments and information returns

Project lifecycle milestones driven by the Terms of Reference

Milestones below show how the TOR maps to procurement and delivery checkpoints during the project lifecycle.

01

Initiation

Sponsor approves TOR and allocates budget

02

Procurement

Issue RFP/RFQ and evaluate vendor proposals

03

Execution

Start work against TOR deliverables and milestones

04

Closure

Accept deliverables and archive signed TOR

Typical eSignature vendor considerations for signing and distributing a TOR

Compare core pricing and capability dimensions that affect how you sign, route, and retain a Project Terms of Reference. Plan features and costs vary by vendor and plan tier.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7‑day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (premium plans) Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No envelope cap 100 envelopes/user/year limit Varies by plan Varies by plan Varies by plan

Frequently asked questions about completing and signing a TOR

Answers to common questions about validity, signing methods, and recordkeeping when preparing a Project Terms of Reference.


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