At a high level, this requires creation of extension field, page customization (to make the approver field read only) and scripting to define the user group who needs to approve the clause / section after it is put for approval.
Additonally, you can also send emails to the approval group when a new clause / section is put into Review phase.
Again, I had read about this solution on a blog written by Rob Stevenson sometime back.
One more thing to add is that the Templates can be configured via Setup --> Contract Generation --> Library item phase configuration. So in essence, the templates can also be progressed through approval phases if need be.
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