Description: The derivation of principal soil characteristics (for use in the assessment of settlement) is presented, and the methods for computation are examined for their relative merits. The interaction of the structure with the ground is examined, with particular reference to different parts of the foundation and the soil. Performance specification for foundations is discussed with reference to tolerances and possible damage. Presentation of the design of foundation structures is subdivided to consider separately the different major classes of foundation type. In each case, emphasis is on the scope existing for limiting settlement, in the light of the interaction which inevitably occurs between soil, foundation and structure. In this connection, it is emphasised that movement may be accommodated within a properly designed structure, as well as resisted or avoided. Finally, the structure completed, procedures are considered for monitoring the performance of structures to corroborate design assumptions and to contribute to the advance of foundation engineering. The appendix demonstrates the use of computer modelling as a design aid, and sets out an example of some of the ideas advanced in the text for the improvement of foundation performance.