Normally ToR specify a list of outputs – in other words a “shopping list.” It is good practice to also give information about the indicative budget available. In most cases it will be known internally how much is available for a piece of work to be commissioned. giving the budget will help, or even make it possible, to devise appropriate and realistic methodologies that will produce the desired outputs. Even better, if the commissioning organisation can state an acceptable day rate or a range of acceptable day rates. That way some potential bidders can rule themselves out at their own feasibility assessment stage (where we decide whether to go for a piece of work or not) and this will save everyone time and effort. But equally we understand if clients want to keep an open mind about that one.
Some clients argue that they want to find out the best Value for Money provider by withholding the information about the budget available. But this is not so! They will find out who is asking for the least money, but in fact they will not be able to make a good and fair comparison between bidders. Indicating the budget available will make it possible to compare like with like and appoint the best provider for the job.