THE FOUNDATION FOR A CONTRACTING APPROACH IS SUPPORTED BY THE RESULTS OF LEARNING THEORY FOCUSED ON BEHAVIOR. ESSENTIALLY, THIS THEORY STATES THAT SOMEONE WILL BE REWARDED FOR BEHAVING IN A DESIRED MANNER. REWARDS ARE FREQUENT AND OCCUR IN A PROGRESSIVE MANNER. FOR MAXIMUM REINFORCEMENT, REWARDS MUST OCCUR IMMEDIATELY AFTER A GOAL IS REACHED AND BE COMMENSURATE WITH THE DESIRED BEHAVIOR ACHIEVED. THE AMERICAN CORRECTIONAL ASSOCIATION INITIATED A PAROLE-CORRECTIONS PROJECT IN 1974 TO PROMOTE THE USE OF A LEGALLY-BINDING WRITTEN CONTRACT AMONG INMATES, DEPARTMENTS OF CORRECTIONS, AND PAROLE BOARDS. INMATES AGREE TO COMPLETE A SPECIFIC PROGRAM OF VOCATIONAL SELF-IMPROVEMENT; DEPARTMENTS AGREE TO GRANT INMATES ACCESS TO EDUCATIONAL, TRAINING, AND COUNSELING SERVICES SPECIFIED; AND PAROLE BOARDS AGREE TO RELEASE INMATES ON THE SPECIFIED DATE IF THEY FULFILL TERMS OF THE CONTRACT. THE CENTRAL CONCEPT IN THE PROJECT IS THAT THE PROBABILITY OF BEHAVIOR DEPENDS ON THE CONSEQUENCES OF BEHAVIOR. A HALFWAY HOUSE WAS OPENED IN MASSACHUSETTS IN 1975 BASED ON THE MUTUAL AGREEMENT PROGRAMMING CONCEPT OF THE PAROLE-CORRECTIONS PROJECT. MAJOR ELEMENTS OF THIS FORM OF PROGRAMMING ARE OPEN NEGOTIATIONS, BINDING CONTRACTS, CONCRETE AND MEASURABLE GOALS, ORIENTATION, PRENEGOTIATION, NEGOTIATION, MONITORING, RENEGOTIATION, AND COMPLETION. THE HALFWAY HOUSE PROGRAM IS DIVIDED INTO PRERELEASE AND POSTRELEASE COMPONENTS. IT IS DESIGNED PRIMARILY TO SERVE STATE PRISON INMATES WHO DO MEET CRITERIA FOR OTHER PRERELEASE PROGRAMS, ARE CONSIDERED HIGH PAROLE RISKS, AND PROBABLY HAVE A SUBSTANCE ABUSE HISTORY. THE RESULTS OF MUTUAL AGREEMENT PROGRAMMING HAVE BEEN ENCOURAGING. PROVISIONS OF THE CONTRACT USED BY THE HALFWAY HOUSE ARE DETAILED, AND A COPY OF THE CONTRACT IS INCLUDED. A BIBLIOGRAPHY IS PROVIDED. (DEP)