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Panel: Definition, Example and Related Terms

What is a Panel ?

In contract law, a panel refers to a list of approved or preferred providers of goods or services. These are entities or individuals who have been vetted and evaluated for their quality, reliability, and suitability. Having a panel of providers helps streamline procurement processes and ensures that the contracting party receives services or goods that meet specific standards.

For example, a company may establish a panel of IT service providers that have been pre-screened for their technical expertise, experience, and cost-effectiveness. When the company needs IT services, they can simply choose from this panel, knowing that all listed providers have met their criteria.

Panels are particularly useful in large organizations or public sector entities where there is a need for ongoing procurement of various goods and services. They reduce the administrative burden associated with evaluating and contracting new suppliers on a case-by-case basis.

It's important to note that being on a panel is not a guarantee of work but indicates that the provider is eligible to be considered for contracts. Regular reviews and updates of the panel are essential to ensure that it remains relevant and contains only those providers who continue to meet the required standards.

Example(s)

  • Scenario Description
    A government agency needs construction services for multiple projects over the next five years. The agency establishes a panel of approved construction companies through a rigorous tender process. When a new project arises, they can choose a company from this panel, knowing all listed companies are pre-approved and meet the necessary standards.
    A multinational corporation requires legal services in different jurisdictions. The corporation creates a panel of law firms that have been vetted for their expertise in international business law. This allows the corporation to quickly and confidently select a legal provider without undergoing a prolonged selection process each time.