This paper proposes dynamic and adaptive reliability methods that can be integrated into a collaborative composition framework with dynamic verification and adaptive reliability modeling. The composition process follows a template-based approach with ontology systems where a variety of items can be reused including services, workflows, application templates, and test cases/scripts. Items submitted to publication are subjected to test and evaluation before they can be published and reused. Test cases can also be ranked based on their effectiveness and test cases will be continuously reranked based on recent testing results and reliability modeling. Composed applications will be tested and evaluated before deployment, and even during execution, applications will be monitored so that their reliability can be continuously updated. This paper proposed several adaptive mechanisms to estimate software reliability and update test case effectiveness. They are illustrated by examples.