AN OVERVIEW OF DIVERSION AND IDENTIFICATION OF SERVICE DELIVERY ISSUES IS PRESENTED, AND FUNDAMENTALS OF THE SERVICE CONTRACT, WHICH CONTAINS THE CONDITIONS OF THE COUNSELING RELATIONSHIP AND THE RESPONSIBILITIES AND LIMITATIONS OF THE CONTRACTING PARTIES, ARE DISCUSSED. THE FEATURES OF THE CONTRACT INCLUDE MUTUAL RESPONSIBILITY, EXPLICITNESS, JOINT PARTICIPATION IN THE COUNSELING PROCESS, ACCOUNTABILITY, AND FLEXIBILITY. THE USE OF A CONTRACT IN THE DIVERSION COUNSELING PROCESS CAN AID PARTICIPANTS IN IDENTIFYING, CONCEPTUALIZING, AND CLARIFYING PROBLEMS AND NEEDS, IMPLEMENTING STEPS TO RESOLVE THE PROBLEMS OR NEEDS, MOTIVATE THEM TO ACHIEVE A SERIES OF SMALL SUCCESSES THROUGH GOAL ATTAINMENT, AND ALLEVIATE SUSPICIONS ABOUT THE ARBITRARINESS OF GIVEN DECISION AFFECTING THE PARTICIPANT. TWO TYPES OF CONTRACTS, ACCEPTANCE-PARTICIPATION AND SERVICE, ARE COMMONLY USED IN DIVERSION PROGRAMS. ACCEPTANCE-PARTICIPATION CONTRACTS ARE USUALLY PREDESIGNED AND OUTLINE GENERAL OBLIGATIONS AND PARAMETERS OF CLIENT BEHAVIOR. THE SERVICE CONTRACT IS A CONFIDENTIAL AGREEMENT THAT FACILITATES COUNSELOR AND PARTICIPANT INTERACTION, PRIORITY SELECTION, AND TIME ALLOCATION FOR ATTAINING GOALS; IT IS DEVELOPED ACCORDING TO INDIVIDUAL NEEDS AND NEGOTIATED BY BOTH PARTIES. EXAMPLES OF BOTH CONTRACT TYPES ARE PRESENTED. THE FIRST STAGE IN CONTRACT DEVELOPMENT IS ASSESSMENT OF THE PARTICIPANTS' CAPABILITIES AND NEEDS. THE NEEDS MUST THEN BE TRANSFORMED INTO GOALS AND OBJECTIVES WHICH ARE SUFFICIENTLY SPECIFIC TO BE MEASURABLE AND REALISTIC FOR THE TIME PERIOD ALLOTTED. THE INTERVENTION STRATEGY SHOULD BE PLANNED BY THE CLIENT AND COUNSELOR, AND THEIR RESPECTIVE ROLES, TASKS, AND CONDITIONS SHOULD BE CLARIFIED. CONTRACT SERVICE DELIVERY PRACTICES REQUIRE OBJECTIVITY AND CONSISTENCY, AND EXPECTATIONS FOR MODIFICATION OR DRASTIC ALTERATION OF CLIENT BEHAVIOR ARE UNREALISTIC. SAMPLE FORMS AND EXAMPLES OF CONTRACTS ARE INCLUDED. THE APPENDIX DETAILS A TYPICAL DIVERSION PROCESS.