The implementation of the NHS and Community Care Act, the greatly incr
eased use of voluntary sector providers and the switch from grants to
contracts form the background to this study. The article brings togeth
er two main themes in current social policy debate in the personal soc
ial services: regulation and quality assurance. Contracts are seen as
increasingly significant forms of input, process and output regulation
, although their impact depends upon their type and specificity and up
on the capacity of purchasers to monitor contract compliance, and the
sanctions available to them. Clarification of the conceptual framework
is followed by the report of an empirical study of the position in a
single large county. The results from this study are then discussed in
the context of evidence from other parts of Britain and the United St
ates. The main issues identified in this discussion are competition, c
onsumer choice, user involvement, the dangers of excessive and inappro
priate regulation, the importance of trust and risk, and the relations
hip of resources to quality.