diff --git a/config/alfresco/patch/patch-services-context.xml b/config/alfresco/patch/patch-services-context.xml
index a4c2ef5d89..f56f936a80 100644
--- a/config/alfresco/patch/patch-services-context.xml
+++ b/config/alfresco/patch/patch-services-context.xml
@@ -1648,4 +1648,27 @@
         </property>
     </bean>
     
+    <!--  Redeploy both direct and indirect submit processes for addition submit failure handling -->
+    <bean id="patch.redeploySubmitProcess6" class="org.alfresco.repo.admin.patch.impl.GenericWorkflowPatch" parent="basePatch" >
+        <property name="id"><value>patch.redeploySubmitProcess6</value></property>
+        <property name="description"><value>patch.redeploySubmitProcess.description</value></property>
+        <property name="fixesFromSchema"><value>0</value></property>
+        <property name="fixesToSchema"><value>2002</value></property>
+        <property name="targetSchema"><value>2003</value></property>
+        <property name="workflowDefinitions">
+            <list>
+               <props>
+                    <prop key="engineId">jbpm</prop>
+                    <prop key="location">alfresco/workflow/submit_processdefinition.xml</prop>
+                    <prop key="mimetype">text/xml</prop>
+               </props>
+               <props>
+                    <prop key="engineId">jbpm</prop>
+                    <prop key="location">alfresco/workflow/submitdirect_processdefinition.xml</prop>
+                    <prop key="mimetype">text/xml</prop>
+               </props>
+            </list>
+        </property>
+    </bean>
+    
 </beans>
diff --git a/config/alfresco/version.properties b/config/alfresco/version.properties
index e08741a4f6..56abc32227 100644
--- a/config/alfresco/version.properties
+++ b/config/alfresco/version.properties
@@ -19,4 +19,4 @@ version.build=@build-number@
 
 # Schema number
 
-version.schema=2002
+version.schema=2003
diff --git a/config/alfresco/workflow/submit_processdefinition.xml b/config/alfresco/workflow/submit_processdefinition.xml
index 4101146143..9dafd0ceee 100644
--- a/config/alfresco/workflow/submit_processdefinition.xml
+++ b/config/alfresco/workflow/submit_processdefinition.xml
@@ -225,6 +225,11 @@
             </timer>
 
 	        <event type="task-end">
+                <script>
+                   <variable name="submitfailed" access="write"/>
+                   <expression>submitfailed = false;</expression>
+                </script>
+	        
 	            <action class="org.alfresco.repo.workflow.jbpm.AlfrescoJavaScript">
 	                <script>
 	                    logger.log("WCM Submit Process: Start submit for " + bpm_workflowDescription + " (by " + person.properties.userName + ")");
@@ -240,11 +245,33 @@
 	                </script>
 	            </action>
 	        </event>
-
         </task>
-        <transition name="" to="end" />
+        <transition name="" to="checkfailedsubmit">
+			<exception-handler>
+                <script>
+					<variable name="submitfailed" access="write"/>
+					<expression>
+                        logger.log("WCM Submit Process: Submit failed for " + bpm_workflowDescription + " (by " + person.properties.userName + ")");
+						submitfailed = true;
+					</expression>
+				</script>
+			</exception-handler>
+        </transition>
     </task-node>
 
+    <decision name="checkfailedsubmit">
+        <transition name="failure" to="submitfailed">
+           <condition>#{submitfailed == true}</condition>
+        </transition>
+        <transition name="success" to="end">
+           <condition>#{submitfailed == false}</condition>
+        </transition>
+    </decision>
+
+    <task-node name="submitfailed">
+        <task name="wcmwf:submitfailedTask" swimlane="initiator"/>
+        <transition name="" to="end"/>
+    </task-node>
 
     <!--                 -->
     <!-- End the Process -->
diff --git a/config/alfresco/workflow/submitdirect_processdefinition.xml b/config/alfresco/workflow/submitdirect_processdefinition.xml
index ccb6b14e20..262d97ede0 100644
--- a/config/alfresco/workflow/submitdirect_processdefinition.xml
+++ b/config/alfresco/workflow/submitdirect_processdefinition.xml
@@ -26,6 +26,11 @@
             </timer>
 
 	        <event type="task-end">
+	            <script>
+	               <variable name="submitfailed" access="write"/>
+	               <expression>submitfailed = false;</expression>
+	            </script>
+	        
 	            <action class="org.alfresco.repo.workflow.jbpm.AlfrescoJavaScript">
 	                <script>
 	                    logger.log("WCM Submit Process: Start submit for " + bpm_workflowDescription + " (by " + person.properties.userName + ")");
@@ -41,9 +46,32 @@
 	                </script>
 	            </action>
 	        </event>
-
         </task>
-        <transition name="" to="end" />
+        <transition name="" to="checkfailedsubmit">
+            <exception-handler>
+                <script>
+                    <variable name="submitfailed" access="write"/>
+                    <expression>
+                        logger.log("WCM Submit Process: Submit failed for " + bpm_workflowDescription + " (by " + person.properties.userName + ")");
+                        submitfailed = true;
+                    </expression>
+                </script>
+            </exception-handler>
+        </transition>
+    </task-node>
+
+    <decision name="checkfailedsubmit">
+        <transition name="failure" to="submitfailed">
+           <condition>#{submitfailed == true}</condition>
+        </transition>
+        <transition name="success" to="end">
+           <condition>#{submitfailed == false}</condition>
+        </transition>
+    </decision>
+
+    <task-node name="submitfailed">
+        <task name="wcmwf:submitfailedTask" swimlane="initiator"/>
+        <transition name="" to="end"/>
     </task-node>
 
     <!--                 -->
diff --git a/config/alfresco/workflow/wcm-workflow-messages.properties b/config/alfresco/workflow/wcm-workflow-messages.properties
index 75123525c8..b41bbdcea6 100644
--- a/config/alfresco/workflow/wcm-workflow-messages.properties
+++ b/config/alfresco/workflow/wcm-workflow-messages.properties
@@ -55,6 +55,8 @@ wcmwf_workflowmodel.type.wcmwf_submitpendingTask.title=Submission Pending
 wcmwf_workflowmodel.type.wcmwf_submitpendingTask.description=Submission Pending
 wcmwf_workflowmodel.type.wcmwf_submitcancelledTask.title=Submission Aborted
 wcmwf_workflowmodel.type.wcmwf_submitcancelledTask.description=Submission Aborted
+wcmwf_workflowmodel.type.wcmwf_submitfailedTask.title=Submission Failed
+wcmwf_workflowmodel.type.wcmwf_submitfailedTask.description=Submission Failed
 
 wcmwf_workflowmodel.property.wcmwf_reviewType.title=Type of Review
 wcmwf_workflowmodel.property.wcmwf_reviewType.description=Serial or parallel review
diff --git a/config/alfresco/workflow/wcmWorkflowModel.xml b/config/alfresco/workflow/wcmWorkflowModel.xml
index 5a0c7611d6..8c3294cec0 100644
--- a/config/alfresco/workflow/wcmWorkflowModel.xml
+++ b/config/alfresco/workflow/wcmWorkflowModel.xml
@@ -172,6 +172,13 @@
       </mandatory-aspects>
     </type>
 
+    <type name="wcmwf:submitfailedTask">
+      <parent>wcmwf:workflowTask</parent>
+      <mandatory-aspects>
+        <aspect>wcmwf:submission</aspect>
+      </mandatory-aspects>
+    </type>
+
     <!-- NOTE: kept for backwards compatibility only - for v2.0 wcm submit process definition -->
     <type name="wcmwf:approvedTask">
       <parent>wcmwf:workflowTask</parent>
diff --git a/source/java/org/alfresco/repo/avm/wf/AVMSubmitPackageHandler.java b/source/java/org/alfresco/repo/avm/wf/AVMSubmitPackageHandler.java
index 4faf3d5a3e..c52ce5638f 100644
--- a/source/java/org/alfresco/repo/avm/wf/AVMSubmitPackageHandler.java
+++ b/source/java/org/alfresco/repo/avm/wf/AVMSubmitPackageHandler.java
@@ -108,18 +108,9 @@ public class AVMSubmitPackageHandler extends JBPMSpringActionHandler implements
         final String tag = (String) executionContext.getContextInstance().getVariable("wcmwf_label");
 
         final Map<QName, PropertyValue> dnsProperties = this.fAVMService.queryStorePropertyKey(targetPath.split(":")[0], QName.createQName(null, ".dns%"));
-        String webProject = dnsProperties.keySet().iterator().next().getLocalName();
-        webProject = webProject.substring(webProject.lastIndexOf('.') + 1, webProject.length());
+        String localName = dnsProperties.keySet().iterator().next().getLocalName();
+        final String webProject = localName.substring(localName.lastIndexOf('.') + 1, localName.length());
         final List<AVMDifference> stagingDiffs = fAVMSyncService.compare(pkgPath.getFirst(), pkgPath.getSecond(), -1, targetPath, null);
-        for (final AVMDifference diff : stagingDiffs)
-        {
-            String p = diff.getSourcePath();
-            if (from != null && from.length() != 0)
-            {
-                p = from + p.substring(pkgPath.getSecond().length());
-            }
-            this.recursivelyRemoveLocks(webProject, -1, p);
-        }
 
         // Allow AVMSubmitTransactionListener to inspect the staging diffs
         // so it can notify the virtualization server via JMX if when this
@@ -134,13 +125,22 @@ public class AVMSubmitPackageHandler extends JBPMSpringActionHandler implements
         // may not have permission to flatten the store the workflow was submitted from
         AuthenticationUtil.runAs(new AuthenticationUtil.RunAsWork<Object>()
         {
-
             public Object doWork() throws Exception
             {
                 fAVMSyncService.update(stagingDiffs, null, false, false, true, true, tag, description);
                 AVMDAOs.Instance().fAVMNodeDAO.flush();
                 fAVMSyncService.flatten(pkgPath.getSecond(), targetPath);
-                
+
+                for (final AVMDifference diff : stagingDiffs)
+                {
+                    String p = diff.getSourcePath();
+                    if (from != null && from.length() != 0)
+                    {
+                        p = from + p.substring(pkgPath.getSecond().length());
+                    }
+                    recursivelyRemoveLocks(webProject, -1, p);
+                }
+
                 // flatten source folder where changes were submitted from
                 if (from != null && from.length() > 0)
                 {
diff --git a/source/test-resources/jbpmresources/test_exception.xml b/source/test-resources/jbpmresources/test_exception.xml
new file mode 100644
index 0000000000..6289704549
--- /dev/null
+++ b/source/test-resources/jbpmresources/test_exception.xml
@@ -0,0 +1,60 @@
+<?xml version="1.0" encoding="UTF-8"?>
+
+<process-definition xmlns="urn:jbpm.org:jpdl-3.1" name="test_exception">
+
+    <start-state name="start">
+       <task name="bpm:startTask" swimlane="initiator" />
+       <transition to="raiseerror"/>
+    </start-state>
+
+    <swimlane name="assignee">
+        <assignment class="org.alfresco.repo.workflow.jbpm.AlfrescoAssignment">
+           <actor>#{bpm_assignee}</actor>
+        </assignment>
+    </swimlane>
+
+    <task-node name="raiseerror">
+        <task name="wf:workflowTask" swimlane="assignee">
+           <event type="task-end">
+            <script>
+               <variable name="submitexception" access="write"/>
+               <expression>submitexception = false;</expression>
+            </script>
+              <script>
+                 //raise exception!
+              </script>
+           </event>
+        </task>
+        <transition name="" to="checkexception">
+        </transition>
+            <exception-handler>
+	           <script>
+	              <variable name="submitexception" access="write"/>
+	              <expression>
+	               System.out.println("Exception");
+	               submitexception = true
+	              </expression>
+	           </script>
+        </exception-handler>
+    </task-node>
+
+    <decision name="checkexception">
+        <event type="node-enter">
+           <script>System.out.println("Value = " + submitexception);</script>
+        </event>
+        <transition name="failure" to="error">
+           <condition>#{submitexception == true}</condition>
+        </transition>
+        <transition name="success" to="end">
+           <condition>#{submitexception == false}</condition>
+        </transition>
+    </decision>
+
+    <task-node name="error">
+        <task name="wf:workflowTask" swimlane="assignee"/>
+        <transition name="" to="end"/>
+    </task-node>
+
+    <end-state name="end"/>
+
+</process-definition>