A contract approval workflow is the defined sequence of internal approvals required before a contract can be executed. Approvals may involve legal, finance, procurement, business owner, and executive sign-off based on contract type and value.
Why structured workflows matter
Ad-hoc approval processes produce inconsistent contracts, missed approvals, and slower execution. Structured workflows encode the organization's contracting policy into reproducible steps.
The value threshold logic
Well-designed workflows scale approval depth to contract value or risk. A EUR 5k engagement should not need the same approval chain as a EUR 5M master agreement. Threshold-based routing keeps velocity high without weakening governance.
