Word Document Contract Templates

You can now upload a Word document (.docx) as a contract template
 under Workforce
 > Contracts & Documents
 > + New Contract Template
, giving you full control over the appearance and formatting of your contracts.
This is currently rolling out to AU & NZ orgs, so you may not see this change in your account yet.
Preview how the document will render as a PDF before publishing, and use dynamic fields to place signatures, printed names, and signature dates precisely within the document. 
You can learn more in this help guide.