This handbook for school administrators (especially principals) was designed to assist those who must evaluate probationary and tenured teachers in keeping with the terms of a negotiated contract. Frequently, the evaluator is not aware of the school district's contractual obligations to teachers, and failure to follow precisely the contract procedures for teacher evaluation is a major cause of school arbitration cases. The handbook is divided into three parts. Part 1 outlines the history of evaluation and collective bargaining, the effects that bargaining has had on teacher dismissal, and criteria for evaluation, as well as some of the pitfalls of common evaluation procedures. Part 2 contains 18 arbitration cases that have resulted from contract evaluation procedures. (Author/DS)