Signed forms that indicate internal approval of contracts before finalization
1. Purpose of Contract Approval Forms
Contract Approval Forms serve the following key purposes:
- Document internal consent before finalizing contractual agreements.
- Provide an audit trail for decisions related to contract commitments.
- Validate that all financial, legal, operational, and strategic considerations have been reviewed.
- Ensure that contract terms align with SayPro’s policies, risk appetite, and resource capacities.
2. Key Requirements and Contents of Contract Approval Forms
Every employee responsible for contract preparation or management must ensure that the following information is captured in the Contract Approval Form:
2.1 Contract Summary
- Contract title
- Contract number or reference code
- Client/partner/vendor name
- Contract type (e.g., service agreement, consultancy, supply contract)
- Contract duration (start and end dates)
- Total contract value (with currency)
- Summary of deliverables and obligations
2.2 Internal Review and Evaluation
- Financial review (e.g., affordability, budget allocation)
- Legal review (e.g., compliance, dispute resolution terms)
- Risk assessment (e.g., penalties, liabilities, dependencies)
- Technical/operational feasibility
- Strategic alignment with SayPro goals or objectives
2.3 Sign-Off Section
The following personnel or departments must provide signatures (digital or handwritten, depending on protocol):
| Role | Signature Required | Comments |
|---|---|---|
| Project/Contract Manager | ✅ | Confirmation of accuracy and feasibility |
| Department Head | ✅ | Approval from business unit or function owner |
| Finance Officer | ✅ | Budget and cost verification |
| Legal Advisor | ✅ | Compliance and risk review |
| Executive Approver (e.g., CEO or COO) | ✅ | Final go-ahead to proceed with contract |
Optional fields may include board or committee approval where applicable.
2.4 Supporting Documents
- Draft contract or agreement
- Tender or proposal documents (if applicable)
- Financial cost breakdown or budget
- Risk register or assessment memo
- Any correspondence relevant to the approval process
3. Submission as Part of SCMR-1
3.1 Monthly Reporting (e.g., January SCMR-1)
For every contract listed in the monthly SCMR-1 report:
- Attach the fully signed Contract Approval Form.
- Ensure that the approval date precedes the contract finalization or signing date.
- Include scanned or digital copies in the document management system (DMS), cross-referenced with the contract reference number.
3.2 Quarterly Compilation
As part of the Quarterly Contract Management Report, Contract Approval Forms from all three months (e.g., January, February, March for Q1) must be compiled, categorized, and submitted for internal audit and governance reviews.
3.3 Deadlines
- Monthly Submission: By the 5th working day of the following month.
- Quarterly Compilation: Submitted no later than the 10th day of the first month of the next quarter.
4. Employee Responsibilities
- Ensure the Contract Approval Form is initiated as soon as a draft contract is prepared.
- Coordinate with relevant departments for timely sign-offs.
- Verify that all mandatory sections are filled accurately and completely.
- Upload the finalized form and supporting documents to the DMS under the appropriate folder for SCMR-1 reporting.
- Retain copies of the approval forms for internal use and compliance checks.
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