Observing that effective employment contracts communicate the school board's expectations to individual administrators and enhance working relationships, this guide informs boards developing contracts for members of management teams of available alternatives. The importance of clarifying the relationship between the administrator and the board, the necessity of defining legal terms used in the contract, and the benefits for both parties of a properly drafted contract are noted. An analysis of the elements of an administrator's contract is keyed to the sample contract that follows. Provisions discussed include the preamble, period of employment, salary, certification, applicability of law, renewal, termination, reduction in force, work year, fringe benefits, professional liability indemnification, evaluation, rights of participation in outside activities, residence requirements, and invalidity. The form of the contract, procedures for its approval, and review by legal counsel to ensure conformance with state laws and local practices are also covered. A sample contract amendment certification and a list of common fringe benefits are appended. (MJL)