In plain English
An exception is a part of the contract that does not follow the usual terms or policy. This status means the contract includes that kind of departure, and approval is needed for it.
In context
Here, it indicates that the contract has a departure from standard terms or policy and needs exception approval.
- Situation
- Running procurement, vendor review, purchase approval, and contract workflow
- What it communicates
- flags that an extra approval step is needed
Meaning limits
By itself, this status does not say whether the exception will be approved.
Examples
“After the vendor added a non-standard liability cap, the contract's status became exception approval required.”
“Since the notice period differs from policy, keep the lease marked exception approval required.”