Such a program uses a selection process and is thus a closed panel system, in contrast to judicare and most pro bono programs, which are open panel systems. A contract panel can be expanded or reduced in size in response to changing client needs or program budgets. Similarly, the nature and scope of work done by the contract attorneys can be changed with relative ease. In addition, the role of the contract attorneys can be adapted over time to complement the strengths and weaknesses of the staff of the legal services program. Legal services programs have contracted with private attorneys on the basis of office location, area of expertise, knowledge of the client community, cultural backgrounds, and other characteristics. A contracts system may appeal to private attorneys because it guarantees payment, satisfies their ethical obligation to serve the poor, or helps them become known within their communities. When contract attorneys are recruited, such questions as quality control systems, recordkeeping, and termination of the contract should be answered. The legal services staff has five areas of responsibility: attorney recruitment and selection; setting of priorities in terms of cases to be handled by the contract attorneys; quality control through spot reviews or other means; intake, screening, and referral of cases; and financial management. Flat fees or hourly rates may be used to set fees for contract attorneys. An encumbrance system, under which funds are set aside as each case is accepted, is essential to the proper financial management of a contract program. Careful planning and corrdination between private attorneys and staff are also essential to a contracts system. Footnotes are provided.