Signing Order: Guide to Everything You Need to Know

Don’t we all hate having to sign papers over and over again? It definitely gets tedious when there are stacks of contracts, agreements, and documents waiting for you to sign each one manually! A signing order controls who acts when—not how many signatures are needed or whether signing is electronic. Check out our blog to learn how you can make your life easier by implementing a signing order! ✍🏼

What is a Signing Order?

Like many of us, you may be asking, what exactly is a signing order? A signing order is a sequence of people needed to sign a specific document for approval. Think of it as a distribution list. For example, before closing a business deal, different departments and executives are required to give their approval before the deal becomes official. When there are multiple individuals involved in the signing process, it can become long and tedious to wait for each person to finish signing the papers, especially when counter-signing is needed. This is why implementing a signing order can help organize the review and signing sequence!

Why Does Signing Order Matter?

A signing order matters when a document needs to be reviewed and signed by multiple people before an agreement is completed. Without a proper signing order, confusion can quickly arise and it can be easy to lose track of who has signed which document. A signing order gives the contract owner control over who receives a contract and acts next. In high-stakes contracts that require executives, stakeholders, and other departments' approval, having a signing order can help maintain a consistent review sequence throughout the paperwork. 

An example of how the sequence of signing orders would occur could be (roles and order depend on the agreement): 

1. An external manager who contacts the company for an offer signs the contract.
2. The project manager, responsible for overseeing the project and budget, signs the contract.
3. The CFO signs the contract, approving the budget of the agreement.

As reflected above, coordinating the three signatures in this example before a deal is closed can be tedious and messy without a signing order. 

What Could Happen Without a Signing Order? 

Using the same example, but without a signing order implemented, imagine the CFO signs the contract first, and the project manager decides to change the scope of the project. Then, besides needing to make changes to the proposal, review the revised version under the agreed process; the CFO may need to re-sign. Given that changes and ambiguity often happen, individuals involved in the agreement may need further review or signatures after a material change. Implementing a signing order does not ensure that all parties complete their actions or prevent those further steps. 

What are the Benefits of a Signing Order?

Implementing a signing order can offer benefits, like efficiency and convenience. Here are 5 examples and considerations for using a signing order. 

1 - Simplified Signing Process

With multiple parties needing to sign a single contract, using a signing order can reduce the need for manual work when a platform supports automated routing. Instead, with the workflow configured, the document moves through the approval process in the specified sequence automatically. 

2 - Status Updates

Using a signing order platform may let you view available updates and the status of the document, depending on its features and settings. By checking the available status of the document, you can follow up with an unavailable required participant.

3 - Manage Bottlenecks 

With a digital signing order, you can reach people from all around the world without physical delivery. A sequential route can still wait for a required participant. 

4 - Security Considerations

With digital signatures, assess authentication, access and audit options separately from routing. Consult qualified advisers about applicable signing requirements. 

5 - Increase Accountability

Clarifying each party’s role and next action in the signing process can support accountability and reduce uncertainty about who is required to sign next. 

Different Types of Signing Orders

Choose sequential routing for dependent actions, parallel for independent actions, and hybrid for dependent stages containing independent participants.

Simple Sequential Routing Order

A simple sequential routing order is when the document is sent as soon as the previous signer has completed their required action. Signer 2 can only have access to the document after signer 1 has completed their required action. 

‍Parallel Routing Order

A parallel routing order is when the document is available to all signees at the same time. Anyone can sign the document as soon as they receive it; there is no need to wait until another signer is finished. All required participants must act before completion; Adobe’s Recipient Group instead lets one member act for the group. 

‍Hybrid Routing Order

In Adobe’s new Request Signature workflow, a hybrid routing order mixes simple sequential and parallel routing orders. Sequential stages can contain parallel participants; all required members must act before the next stage begins. Docusign separately documents routing to the same person multiple times, including a final copy.

For illustration: external manager first, then project manager and CFO together only if their actions are independent; completion waits for both.

‍How to Set Up a Signing Order 

1. Choose a signing order platform you’d like to use. Some examples are Adobe Acrobat Sign (new Request Signature) and Docusign, as documented in their official guides. Check the capabilities you need. 
2. The contract owner can add the list of individuals needed to sign, check contact details, assign roles and fields, and choose a sequential, parallel or hybrid route.
3. Check the intended document version and recipients, then send a signing request message through the platform. 
4. For a sequential route, the contract is sent to the first person in the signing order. Once they complete their action, it will be passed on to the next stage. Parallel participants receive it together; hybrid stages wait for all required actions before progressing. 
5. Check that all required parties have completed their actions, then retain the final signed agreement. 

When you are making business deals or agreements, signing documents is an unavoidable step. However, it doesn't have to be stressful! Consider a signing order for multi-person documents to help reduce confusion! 📝