The Hidden Costs of Low-Bid Control Panels

Choosing the cheapest control panel bid may seem like a way to save money, but it often leads to higher long-term costs.

What UL508A Covers (and Doesn’t)

● UL508A listing alone is not enough — UL508A ensures basic electrical safety, but not functional design quality or performance.

● Poor wiring layout — UL508A mandates safe clearances, but not service-friendly wire routing or panel layout.

● Cheap components fail more often — UL508A requires properly rated parts, but not high reliability or long life.

● Bad design practices (UPS failover, alarm logic, etc.) — UL508A does not evaluate control logic or alarm handling — that’s up to engineering.

● Improper use of basic relays for safety — UL508A allows basic relays if they meet rating, but modern safety design calls for certified safety relays and risk assessment.

● Improper PLC mounting voiding warranty — UL508A checks temperature spacing, but not manufacturer-specific mounting requirements.

● Lack of future proofing — UL508A has no provisions for expansion space or system scalability.

Common Problems We See in Low-Bid Panels

● UL508A listing alone is not enough: Some low-cost builders will deliver a UL508A-certified panel that is still poorly designed. Simply meeting the certification does not guarantee good engineering.

● Poor wiring layout: Inexpensive panels may not provide proper space or entry points for field wiring, causing field installation delays and creating maintenance headaches later.

● Low-grade components: Using cheap relays, terminal blocks, or power supplies increases the likelihood of frequent failures.

● Bad inherent design practices: Examples include wiring "power fail" detection circuits from the same source as the PLC power — when the power goes out, the PLC also shuts off, leaving no alarm or record.

● UPS auto-bypass without notification: Panels that auto-switch from UPS to non-UPS power but do not notify the operator leave critical equipment unprotected.

● Excessive or improper relay use: Failing to use proper interposing relays or not isolating PLC outputs can overload the PLC and reduce its lifespan.

● Improper PLC mounting: We have seen competitors mount PLCs in ways that violate manufacturer requirements, which can void warranties. Examples include vertical mounting when only horizontal is allowed, or mounting in high-heat locations inside the panel.

● Unsafe safety design: Some low-bid panels skip proper safety relays or controllers and instead use basic relays for emergency stops and safety interlocks. This practice can compromise the safety of operators and result in OSHA violations or increased liability.

● Lack of future-proofing: Low-bid panels often leave no space or provisions for future expansion, forcing costly rebuilds when system changes are needed.

Our UL508A Panel Build Philosophy

At BEA, we don't just "check the box" to meet UL508A minimum standards:

● We provide well-engineered, fully documented designs.
● We follow best practices for layout, wiring, and labeling.
● We follow manufacturer mounting and clearance requirements.
● We use industrial-grade components with proven field reliability.
● We properly design safety circuits with certified safety relays and risk reduction techniques.
● We build every panel with an eye toward future scalability and easy serviceability.

Our goal is to give you not just a "legal" panel — but one that will perform for years to come, reduce service costs, and protect both your equipment and your staff.

In the long run, a high-quality panel from a reputable builder will reduce total cost of ownership, improve reliability, and make life easier for plant staff and integrators.