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Procedures for 100% Inspections

Effective Date: November 1, 2015

I. References
II. Definition of 100% inspection
III. 100% Inspections Exception Criteria

A. Emergency or Disaster Declaration
B. Travel Warnings
C. One-Time Project:
D. Other Extenuating Circumstances:

IV. Application for approval

A. General
B. Approved Applications
C. Additional Requirements for Emergency or Disaster Relief
D. Additional Requirements for Travel Warning
E. Additional Requirements for One-Time Project
F. Additional Requirements for Other Extenuating Circumstances

V. Manufacturer’s Responsibilities Prior to Scheduling the Inspection

A. Registration
B. Notification to TDLR of Design Review Agency (DRA)
C. Construction Documents to DRA
D. Approved Documents to TDLR

VI. Manufacturer’s Responsibilities for Inspections
VII. Documentation of Inspections
VIII. Certification Decals

Hundred percent inspections in lieu of certification as an industrialized housing and building manufacturer may be approved by the Executive Director of TDLR in accordance with § 70.60(c) of the rules governing the Industrialized Housing and Buildings (IHB) program. This document has been developed to provide procedures for these inspections when approved by the Executive Director.

I. References

A. Occupations Code, Chapter 1202, Industrialized Housing and Buildings (IHB) Statute – Specific sections of the IHB statute that are applicable include, but are not limited to, the following.

1. 1202.001, General Definitions

2. 1202.002, Definition of Industrialized Housing

3. 1202.003, Definition of Industrialized Building

4. 1202.151, Building Codes

5. 1202.154, Design Review

6. 1202.201, Inspection Procedures

7. 1202.202, Department Inspections

8. 1202.204, Rules Providing for Decals or Insignia

B. Administrative Rules of the Texas Department of Licensing and Regulation, 16 Texas Administrative Code, Chapter 70 (rules) – Specific sections of the rules governing the IHB program that are applicable include, but are not limited to, the following.

1. § 70.10 – Definitions

2. § 70.20 – Registration of Manufacturers, REF Builders, and Industrialized Builders

3. § 70.21 – Registration of Design Review Agencies, Third Party Inspection Agencies and Inspectors, and Third Party Site Inspectors

4. § 70.30 – Exemptions

5. § 70.60 – Responsibilities of the Department – Plant Certification

6. § 70.70 – Responsibilities of the Registrants – Manufacturer’s Design Package and REF Builder’s Construction Documents

7. § 70.73 – Responsibilities of the Registrants – Building Site Construction and Inspections

II. Definition of 100% Inspection

Inspection of each module or modular component at each and every stage of construction, including, but not limited to, framing, mechanical, plumbing, electrical, energy compliance systems, and system testing.

III. 100% Inspections Exception Criteria

100% inspections may be considered by the Executive Director in lieu of certification only in the following circumstances.

A. Emergency or Disaster Declaration

The modular house or building is necessary to aid in an emergency or disaster that has been officially declared by the United States government, the Governor of Texas, or a political subdivision of either.

B. Travel Warnings

If a manufacturer requests a certification for a manufacturing facility located in an area for which the US State Department has established travel warnings or TDLR’s Executive Director determines that travel to an area might risk the safety or well-being of TDLR inspectors.

C. One-Time Project:

If the house or building is a one-time project and the manufacturer certifies to the Department that it will not construct additional housing or buildings for placement in Texas without going through the certification process in accordance with § 70.60 of the IHB rules.

D. Other Extenuating Circumstances:

The manufacturer can request approval for other extenuating circumstances that prevent strict compliance with the manufacturing certification process established under § 70.60 of the IHB rules.

IV. Application for approval.

A. General

Applications can only be considered when those unique circumstances exist that meet the exception criteria. The application must be submitted for consideration by the Executive Director prior to shipping or installing the modular housing or buildings.

B. Approved Applications

The manufacturer may request consideration for a 100% inspection in lieu of plant certification in accordance with § 70.60 of the IHB rules by completing the Department approved application. The following information is required for all exceptions.

1. Name of manufacturer and physical address of the facility where the units will be constructed.

2. Manufacturer’s contact name and contact information (phone number, email address, or both).

3. Circumstance for requesting the inspection in accordance with part III of these procedures.

4. The building’s use and installation address or area where building will be installed.

5. Signature of applicant. For a partnership, the applicant’s signature must be a managing partner. For a corporation the applicant’s signature must be an officer of the corporation.

C. Additional Requirements for Emergency or Disaster Relief

1. Provide documentation from government entity making the declaration, including any preliminary damage assessments, estimates of the amount and severity of damage, and projected impact on the private and public sector.

2. Certify that the houses or buildings cannot be supplied by existing certified manufacturers or from the inventory of industrialized builders.

3. Provide dates that houses or buildings are needed to address emergency or disaster.

D. Additional Requirements for Travel Warning

Provide name and registration number of approved third party inspection agency that has agreed to perform the inspection.

E. Additional Requirements for One-Time Project

Certify that this is a one-time project in accordance with § 70.60(c)(1)(D) of the IHB rules.

F. Additional Requirements for Other Extenuating Circumstances

1. Provide detailed information regarding the circumstances to support your application

2. Provide documentation to support your claim of the circumstances.

V. Manufacturer’s Responsibilities Prior to Scheduling the Inspection

A. Registration

The plant must register as a manufacturer in accordance with § 70.20 of the IHB rules.

B. Notification to TDLR of Design Review Agency (DRA)

The manufacturer shall give TDLR written notice of the name and registration number of the DRA selected to perform plan reviews.

C. Construction Documents to DRA

The manufacturer shall submit a copy of the construction documents to the DRA for review and approval in accordance with §§ 70.70(b) and (d) of the IHB rules. The construction documentation shall clearly identify the construction to be completed at the plant separately from that to be completed at the installation site.

D. Approved Documents to TDLR

The manufacturer’s DRA shall submit all approved plans, calculations, specifications, and other pertinent construction documents to the Department within 5 days of approval.

VI. Manufacturer’s Responsibilities for Inspections

A. The manufacturer shall schedule inspections with the Department and/or approved Third Party Inspectors designated by the Department to perform the inspections.

B. Inspections cannot be scheduled prior to receipt of the approved construction documents by the Department

C. Inspectors shall be provided a legible copy of the approved construction documents a minimum of 2 weeks prior to the first inspection. The documents may be provided electronically.

D. The manufacturer shall submit copies of pertinent construction documentation to the Department, such as steel mill reports, welder certifications, listing reports, and other applicable documents, prior to the start of the inspection.

E. The manufacturer shall ensure that all construction is inspected by the inspectors designated by the Department before it is covered by other construction. Deviations noted by the inspectors shall be corrected and re-inspected before the construction is covered.

F. The manufacturer shall not ship the units until:

1. All construction has been completed;

2. All violations have been corrected and all inspections have been passed; and

3. Decals have been attached to the units.

VII. Documentation of Inspections

A. Inspections shall be documented on forms approved by the Department.

B. A copy of the inspection report shall be given to the manufacturer at the completion of each inspection.

C. Inspection reports shall be submitted to the Department within 5 days of each inspection.

D. The final inspection report shall also document attachment of the certification decals to the units.

VIII. Certification Decals

Decals shall be purchased for the units in accordance with § 70.77 of the IHB rules with the following exceptions:

A. Decals will be released only after the manufacturer has provided the industrialized builder registration number or installation permit number of the person responsible for the installation.

B. Decals will be released only after inspection fees have been paid.

C. Decals will be released only to the inspector for attachment to the units upon completion of a successful final inspection.