Attention is drawn to the dynamics of criterion-referenced test (CRT) construction in this report. How CRT's are developed at the Instructional Objectives Exchange is described through a series of three steps. The procedures pertain to the construction of "off the shelf" as well as "customized" tests. Step one, isolating the attribute to be assessed, involves consideration of the skills or attitudinal characteristics proposed for measurement. Each characteristic must satisfy two key criteria: appropriate scope and instructability. Step two, writing the test specification, requires use of a test specification form consisting of five parts. The first four are common to all sets of test specifications: general description, sample item, stimulus attributes, response attitudes. The fifth part, content supplement, is optional. After drafting, the specifications are evaluated for comprehensiveness and precision. Step three, generating the item pool, requires the creation of an item-sampling plan. Variables of concern are the content and subskill dimensions that can differ among items. After identifying the variables, the sample plan is implemented (assigned to different writers), edited, and reviewed. Finally, all CRT items are field tested and judged on the basis of empirical data. (Author/GSK)