Formal program construction by transformations is a method of software development in which a program is derived from a formal problem specification by manageable, controlled transformation steps which guarantee that the final product meets the initial specification. This methodology has been investigated in the Munich project CIP (computer-aided intuition-guided programming). The research includes the design of a wide-spectrum language specifically tailored to the needs of transformational programming, the construction of a transformation system to support the methodology, and the study of transformation rules and other methodological issues. Particular emphasis has been laid on developing a sound theoretical basis for the overall approach.< >