1. (1) Application shall be made to DFCM for approval as a third party inspection agency. Application shall be made under oath and shall be accompanied by information and evidence that is adequate for DFCM to determine whether the applicant is specially qualified by reason of licensure, facilities, personnel, experience, and demonstrated reliability to investigate, test, and evaluate modular building units for compliance with the State Construction Code applicable to modular building units and this rule and to provide offsite construction documents review and inspection.
2. (2) Following a determination by DFCM that an application is complete, the information contained in the application and any other information deemed necessary by DFCM will be reviewed for approval or disapproval. If the application is approved, the applicant will be notified with an approval letter. If the application is disapproved, the applicant will be notified in writing of the reasons for the disapproval. The applicant may then resubmit the application within 30 days of the receipt of the notification of disapproval for reconsideration of approval.

3. (3) DFCM may suspend or revoke the approval of a third party inspection agency upon a determination that:

   1. (a) approval was based upon fraudulent or inaccurate information;
   2. (b) a change in facts or circumstances renders the third part inspection agency incapable of meeting its duties and responsibilities as a third party inspection agency in a satisfactory manner; or
   3. (c) the third party inspection agency failed to discharge its duties and responsibilities as a third party inspection agency in a satisfactory manner. In such cases, DFCM will issue a suspension or revocation notice to the third party inspection agency outlining the reasons for the actions and the terms, if any, for reinstatement.
4. (3) A third party inspection agency shall carry professional errors and omissions insurance in an amount of at least $2,000,000 per claim or annual aggregate with a deductible or self-insured retention of not greater than $100,000, unless different amounts are authorized by DFCM in writing. Unless covered by the professional errors and omissions insurance of a third party inspection agency under the previous sentence, a third party inspector shall carry professional errors and omissions insurance in an amount of at least $2,000,000 per claim or annual aggregate with a deductible or self-insured retention of not greater than $100,000, unless different amounts are authorized by DFCM in writing.

KEY: modular buildings

Date of Last Change: March 4, 2025

Authorizing, and Implemented or Interpreted Law: 15A-1-306.1; 15A-1-307; 15A-1-308