Approval workflow
Contract approval workflows are the sequence of steps a contract goes through during the review, approval, and signature stages.
What is a contract approval workflow?
Contract approval workflows are the sequence of steps a contract goes through during the review, approval, and signature stages of its lifecycle. The creation phase of a contract is critical because, once signed, it formalises the intention between contracting parties.
Approval workflows will vary in complexity depending on the organisation's size, risk appetite, and the type of agreement they’re dealing with. At enterprise, the approval workflow of a complex agreement will likely include procurment, legal, compliance, and risk - with more teams (from budget owners to business owners) approving the deal as a whole.
In high-volume environments, this workflow is typically automated using Contract Lifecycle Management (CLM) tools like Docfield.
Why are contract approval workflows important?
Contracts should unify the work of multiple teams, as their impact stretches far and wide. Without a formal approval process it is likely that mistakes will go unnoticed. Contract approval and visibility are strongly linked.
By defining and following a contract approval workflow, organisations prevent unauthorised commitments whilst ensuring alignment across departments. With tools like Docfield, teams also maintain an audit trail for compliance and future reference. This ensures accountability, by clarifying who approved a contract, and when - a key advantage in highly regulated industries.
What does a typical contract approval workflow look like?
The process for each company will differ, but many workflows will include the following stages:
- Preliminary review – Legal creates a set of templates or pre-approved language that is checked for completeness, accuracy, and alignment with business policy.
- Stakeholder routing – The contract is routed to relevant reviewers (e.g. legal, finance, compliance) based on contract value, jurisdiction, or contract type.
- Approval and sign-off – Final approvals are collected before the contract moves to signature.
- Audit logging – Every approval action is recorded for compliance and reporting.
Modern CLM platforms like Docfield automate this entire flow, applying logic-based routing and centralising approval histories. Take a free trial today!