I get criticized for speaking too fast or trying to do too much in lectures. Sometimes students feel overwhelmed by the amount of information I put out and feel that they don't have enough information to disagree with me despite misgivings about what I am saying. Contracts are often used in the Politcal Economy area at Evergreen because we don't really offer much advanced work. So we use contracts, but often that work could be done better as group work. But we use internships and contracts effectively around issues of social change.
Internships are really good ways to combine theory and practice.
More than for programs it seems important that students on contract be self motivated independent learners. People need to be able to read the books, do the work, and see me as someone they can talk with rather than as an enforcer. Students need to be able to bring an interpretation of the text with them rather than depending on me to help generate it. Typically I look for advanced students. Most frequently I do contracts with students I have worked with previously.