itself as a consultant for the resulting assignment (para.
4.3.2 [b]).
10.2 Drafting the Terms of Reference
The following considerations should guide prepara-tion of the TOR:
•
The TOR should contain sufficient background in-formation on both the assignment and the project to enable invited consultants to present responsive proposals.•
The scope of work should be consistent with the available staff-month estimate or the estimated cost of the services (if this is given ex ante).•
The TOR should take into account the organiza-tion of the Borrower and its level of readiness, in-cluding its staff capabilities, institutional strength, and organization.The level of detail and quality of information that can be contained in the TOR influence the selection method to be adopted (see chapter 9). For example, if the TOR for a complex assignment cannot be defined with adequate precision and detail, QBS may be more appropriate than QCBS, whereas the latter is preferable when both a defined scope of work and a reliable staff-month or cost estimate is available.
The authors of the TOR should be experts in con-sulting services similar to those of the TOR. This is im-portant to ensure that the description of the objectives and scope of work of the assignment is realistic, the background information provided is adequate, con-sultants are not burdened with unnecessarily demand-ing requirements, and the time schedule is consistent with the objective of the assignment and the output re-quired of the consultants.
The authors of the TOR should also be familiar with main local conditions, such as climate,
environ-ment, institutions, laws, customs, holidays, remuner-ation levels, transportremuner-ation systems, and so forth.
Seasonal variations, together with the peculiarities of the region where the assignment will take place, should be considered if they are likely to affect the execution of field activities. Aspects related to the logistics of the project should also be considered. If a field visit by the consultants is necessary, but not feasible, then an aer-ial trip may be arranged to enable them to form an overall impression of the area.
If capacity-building activities are required as part of the assignment, the Borrower should include them in the TOR, for which additional time and budget should be allocated (see chapter 6).
The TOR should clearly identify and define the output and deliverables required of the consultants, such as reports, data, maps, drawings, or software, and should include all inputs that the Borrower will send to the consultants. These may include past prepara-tion studies, databases, aerial photographs, maps, and records of existing surveys. The TOR should also iden-tify the Borrower’s executing agency and explain insti-tutional and organizational arrangements for the supervision of consultant work. In addition, the TOR should list and specify the facilities and counterpart staff to be provided or designated by the Borrower.
10.3 Outline of the Terms of Reference
The TOR normally comprise the following sections:
•
Project background•
Objectives of the assignment•
Scope of work•
Capacity-building program•
List of reports, schedule of deliveries, and period of performance•
Data, local services, personnel, and facilities to be provided by the Borrower•
Institutional and organization arrangements10.3.1 Project Background
The background summarizes the main features of the project and describes the assignment’s key objectives and general purpose. In particular, it should include the following:
•
Name of the Borrower•
Project location•
Rationale for the project•
Project history (what has been done so far and by whom)•
List of relevant studies and basic data•
Need for consultants in the project and issues to be resolved•
Activities to be carried out by the consultants•
Source of financing for the assignment•
Supervision arrangements10.3.2 Objectives of the Consulting Assignment
To avoid misleading consultants, the TOR should pre-cisely describe the objectives and expected results of the assignment. Typical objectives of an assignment in Bank-financed projects may include the following:
•
Sector and strategy studies or assessments•
Studies on public sector reform, institutional and regulatory reforms, or leadership and management change•
Master plans or project feasibility before investment•
Preparation of bidding documents and project-detailed design•
Project management and implementation super-vision•
Capacity building and training•
Collection and analysis of data•
Evaluation of Borrower assets for sale (such as in privatization projects)10.3.3 Scope of Work
This section of the TOR details all the main activities (or tasks)1to be conducted by consultants and the ex-pected results of those activities (or tasks). The TOR should describe only the activities, not the approach or methodology by which the results are to be achieved, because the latter are the responsibility of those prepar-ing the proposals. Nevertheless, in certain cases, the TOR may provide strong suggestions on the approach and indications on the methodology that consultants could or should use to execute the assignment. Under certain selection methods, the Borrower can disclose its own estimated staff-months or its estimated cost of the services, but not both.
Often the project may require a phased consult-ant assignment. In such cases, the TOR should be more detailed for the first phase and less detailed for DEVELOPING THE TERMS OF REFERENCE 49
Scope of Work 1 0 . 3 . 3
50 DEVELOPING THE TERMS OF REFERENCE Scope of Work
1 0 . 3 . 3
the subsequent ones. The TOR for the subsequent phases will be refined based on outcomes of the earlier phases.
In a TOR, the scope of work of the assignment is usually defined by addressing the following issues (de-pending on the project features and objectives of the assignment, some of these issues may not be relevant, while others may have to be added):
•
Relevance of the assignment for the implementa-tion of the project•
Definition, scope, and limits of the assignment•
Desired level of detail (level of design, accuracy, com-position of cost estimates, and so forth)•
Span of projections (time horizon, life span of proj-ect components, and so forth)•
Necessary comparison of the assignment with simi-lar projects•
Main issues to be addressed•
Alternatives to be considered, and the main criteria to be used to compare them•
Required surveys, special analyses, and models•
Special equipment requirements•
Borrower’s institutional framework, organization, and legal setting•
Transfer of knowledge, objectives, and scope•
Language requirements•
Units of measurement to be used•
Need for continuity, such as data gathering•
Quality management requirements (if needed) Phased assignments are likely to require that the scope of work be modified, depending on intermediate results. For instance, the scope of work for a feasibility study originally covering a number of alternatives will be reduced if, during execution of the assignment, some alternatives prove not viable. Similarly, the scope of work can be expanded if more-accurate studies than initially anticipated become necessary. In such cases, the TOR should clearly indicate the circumstances under which a decision will be made by the Borrower to modify the scope of work.10.3.4 Capacity Building and Transfer of Knowledge
If capacity building and transfer of knowledge are a specific objective of the assignment, the TOR should provide specific details on the characteristics of the re-quired services and ask consultants to propose ap-proach and methodology (as discussed in chapter 6 of the Manual).
10.3.5 Reports and Schedule of Deliveries
The TOR should indicate the estimated duration of the assignment, from the date of commencement2to the date the Borrower receives and accepts the consultant’s final report or a specified completion date. Other dates may be considered (for example, the date of effective-ness of the contract). The assignment’s reporting re-quirements should be clearly specified. In particular, for inception and progress reports, there should be a balance between keeping the Borrower well informed and not forcing consultants to spend an excessive amount of time preparing minor reports. The TOR should indicate the format, frequency, and content of reports, as well as the number of copies, the language, and the names of the prospective recipients of the re-ports. For all major reports, an executive summary is recommended as a separate volume.
Depending on the assignment, the following re-ports are usually required:
(a) Inception Report. This report should be submitted shortly after the commencement date. Any major inconsistency in the TOR, deficiency in Borrower assistance, or staffing problems that have become apparent during this period should be included.
The inception report is designed to give the Borrower confidence that the assignment can be carried out as planned and as agreed on in the con-tract, and it should bring to the Borrower’s atten-tion major problems that might affect the direcatten-tion and progress of the work.
(b) Progress Reports. These reports keep the Borrower and Bank regularly informed about the progress of the assignment. They may also provide warnings of anticipated problems or serve as a reminder for payment of invoices due. Depending on the needs of the assignment, progress reports may be deliv-ered monthly or bimonthly. For feasibility studies and design assignments, delivery of progress re-ports at two-month intervals is generally satisfac-tory. For technical assistance and implementation supervision (in construction, for instance) progress reports are best submitted monthly. Progress re-ports may include a bar chart showing details of progress and any changes in the assignment sched-ule. Photographs are a quick and easy way of con-veying the status of a project, and their use in progress reports is encouraged. For technical assis-tance services, progress reports also serve to set out
the work program for the following months. Each team member usually contributes to the prepara-tion of the monthly report.
(c) Interim Reports. If the assignment is phased, in-terim reports are required to inform the Borrower of preliminary results, alternative solutions, and major decisions that need to be made. Because the recommendations of an interim report may affect later phases of the assignment (and even influence the results of the project), both the Bank and the Borrower should discuss the draft interim reports with consultants in the field. The Borrower should not take more than 15 days to review and approve draft interim reports.
(d) Final Report. The final report is due at the comple-tion of the assignment. The Borrower, Bank, and consultants should discuss the report while it is still in draft form. The consultants alone are responsi-ble for their findings; although changes may be sug-gested during the discussions, consultants should not be forced to make such changes. If the consult-ants do not accept comments or recommendations from the Borrower, these should be noted in the re-port. The consultants should include in the report the reasons for not accepting such changes.
10.3.6 Data, Services, Personnel, and Facilities to Be Provided by the Borrower
The RFP indicates the inputs provided by the Borrower to the consultants in section 2, Instructions to Consult-ants (ITC). The TOR should complement the ITC by listing in detail all the information and services that will be made available by the Borrower. The TOR should also describe the Borrower’s available software and computer models to be used by the consultants, if any.Facilities to be provided by the Borrower may include office space, vehicles, survey equipment, office and computer equipment, and telecommunication systems.
When possible, the Borrower may provide vehicles for use by consultants during the course of their as-signment. Otherwise, these should be provided for under the consultants’ contract and turned over to the Borrower at completion. The same can apply to items such as office and computer equipment. The Borrower should request compatibility with its own equipment.
To avoid difficulties caused by delays in allocating Borrower counterpart staff to the project, the TOR should be provided for such staff before the assignment begins (para. 10.2). During the initial drafting of the TOR, the Borrower should, with assistance from Bank staff, determine which of the Borrower’s staff can act as counterpart. If the Borrower provides support staff who will work under the consultants’ responsibility, the TOR should clearly indicate that the said staff will work the same hours as consultants, will be under the con-sultants’ supervision, and will not be remunerated under the consultants’ contract.
The Borrower’s inputs, if not well defined in ad-vance, are often a matter of contention for the duration of the assignment. Consultants tend to overestimate the Borrower’s contribution, and as a result, they reduce their proposal price, particularly if the method of selec-tion takes price into account. Borrowers also tend to promise more than they can actually deliver. It is there-fore important that the Borrower’s inputs are defined in the TOR as precisely and realistically as possible.
10.3.7 Institutional and Organization Arrangements
The TOR should define the institutional setup and the organization surrounding the assignment and indicate the role and responsibilities of all those involved, spec-ifying the type, timing, and relevance of participation.
The TOR should define the hierarchy and level of authority of counterpart personnel, as well as the re-quested level of experience of the Borrower’s personnel who will be integrated into the consultants’ team.
Notes
1. In TOR covering self-contained assignments such as feasibility studies and project designs, consultants are generally required to describe the “activities”
that they propose to carry out. In TOR of assign-ments consisting mainly of the provision of special-ized staff to assist the Borrower in certain functions, consultants are required to describe the “tasks” for which they will be responsible.
2. Date on which the consultants are expected to start the services.
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Institutional and Organization Arrangements 1 0 . 3 . 7
52
11.1 Main Considerations
The cost estimate of a consulting assignment is prepared by adding the remuneration of consultant staff and the direct expenses to be incurred by consultants for the ex-ecution of that assignment. Those amounts are based on an estimate of staff time (expert per unit of time, hour, month) required to carry out the services and an esti-mate of each of their related cost components. Because the estimate of the required staff time is derived from the TOR, the more exhaustive and accurate the TOR, the more precise the estimate. Sometimes the scope of work of the services is difficult to define and quantify because the output, extent, or exact duration of the services can-not be easily specified in advance. In such cases, Bank staff should assist the Borrower by having an expert re-view or prepare the TOR, staff time, and cost estimate and in adopting a selection method that takes these dif-ficulties into account.
A mismatch between the cost estimate and the TOR is likely to mislead consultants on the desired scope, depth, and detail of the service required and may even-tually generate serious problems during contract nego-tiations or (worse) during the implementation of the assignment. Preparing a staff-month and cost estimate for a consulting assignment is an interactive process necessary to clarify to the Borrower whether the assign-ment can be carried out in a manner compatible with the project objectives and the resources available. The preparation of the cost estimate can lead to the revision of the TOR, including the scope of work of the services and the organization arrangements of the Borrower.
In general, a cost estimate includes items relating to the following: