This part of the School Management Handbook provides school administrators with an overview of the factors affecting collective bargaining and contract management in the schools. The first section introduces the concept of collective bargaining in education, itemizing the legal principles underlying bargaining and reviewing the principal's roles as negotiator, contract administrator, and in some cases as member of a bargaining unit. Section 2 focuses on the negotiation process, providing information on the scope of negotiations, precautions to take before negotiations, negotiation strategies, contract provisions, and handling reductions in force. Contract management is the topic of section 3, which discusses how teacher contracts can affect relations between teachers and principals, what the principal's role in contract management is, how contract management can be planned for, how decisions regarding the implementation of contract provisions can be approached by principals, and how grievances should be handled. The fourth section describes situations in which principals themselves bargain collectively. The fifth and final section first considers trends in collective bargaining, then discusses the importance of adequate information, planning, and communications in labor relations. (PGD)