The terms of reference contain the technical specifications, objectives and structure of how to execute a specific study, work "Work (sociology)"), project, committee, conference, negotiation, etc.

Creating detailed terms of reference is critical, as they define:.

The terms of reference form a kind of map. They give a clear path for progress, specifying what needs to be achieved, by whom and when. It must be, then, a list of results that agree with the existing requirements, scope and limitations.

The terms of reference are created before each of the stages of the project cycle. Thus, for the design stage of the project, immediately after the document that describes the idea of ​​the project is approved. They are documented by the project manager and presented to the project contributors for approval. Once approved, the project team has a clear definition of where the project should go. At that time, the work team will be prepared to continue developing the next stages of the project in a structured way.

Terms of reference are drawn up for the preliminary design, subsequently for the feasibility study, for the final engineering study, and finally for construction. Generally, the person in charge of developing one of the stages also writes the terms of reference for the development of the next stage. Thus, the person in charge of the preliminary design will also prepare the terms of reference for the feasibility study, and so on.