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272V: Audit of certified MCM
or “A certified builder of factory-made house parts must be checked every year to make sure they're still doing a good job.”
You could also call this:

“Stopping or cancelling a manufacturer's approval if they break rules or don't meet standards”

You need to know about the rules for suspending or revoking the certification of a modular component manufacturer (MCM). The responsible certification body can suspend or revoke an MCM’s certification if they don’t meet the criteria anymore, don’t follow the rules, or haven’t been checked in the last year. If the rules change and that’s why an MCM doesn’t meet the criteria anymore, they get three months to fix things before their certification can be suspended.

If an MCM’s certification is suspended, they should get enough time to meet the criteria again or get checked. The certification body must remove the suspension if the MCM meets the criteria again or gets checked. If the suspension isn’t removed by the end of the suspension time, the certification might be revoked.

Before suspending or revoking a certification, the certification body must tell the MCM why they’re doing it and give them a chance to explain their side. The certification body must also tell the MCM in writing about any decisions they make about suspending, removing a suspension, or revoking a certification.

The head of the certification body can also use these powers, even if the responsible certification body has already used them for the same manufacturer.

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Next up: 272X: Notification to chief executive by registered MCMCB

or “A company that checks builders of prefab houses must tell the government when they approve, stop, or cancel a builder's permission to work.”
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Part 3 Regulatory responsibilities and accreditation
Responsibilities relating to modular component manufacturers: Certification of modular component manufacturers

272WSuspension or revocation of certification of MCM

  1. The responsible MCMCB for a certified MCM may suspend or revoke the person’s certification if satisfied that they—

  2. no longer meet the criteria for certification in section 272U; or
    1. have failed to comply with any MCM scheme rules; or
      1. have not been audited within the previous 12 months (or any shorter period prescribed for the purposes of section 272V(1)(b)).

        1. Subsection (1)(b) does not apply if the person has been certified for less than 12 months (or the shorter prescribed period).

        2. However, if—

        3. regulations made for the purposes of section 272U(1)(b)(ii) or (c) or any MCM scheme rules that supplement those regulations are amended; and
          1. a person ceases to meet the criteria in section 272U solely as a result of those amendments,—

              1. the responsible MCMCB cannot suspend or revoke their certification under subsection (1)(a) unless 3 months have elapsed since those amendments came into force.

            1. The period of a suspension must allow the person a reasonable period to again meet the criteria in section 272U or to get an audit undertaken.

            2. The responsible MCMCB must lift the suspension of a person’s certification if satisfied that they again meet those criteria or have been audited.

            3. If the suspension is not lifted before the end of the suspension period, the responsible MCMCB may revoke the certification.

            4. Before suspending or revoking a person’s certification, the responsible MCMCB must—

            5. notify them in writing of the intention to do so and the reasons for it; and
              1. give them a reasonable opportunity to be heard.

                1. If the responsible MCMCB suspends, lifts the suspension of, or revokes a person’s certification, it must notify the person in writing of—

                2. its decision and the reasons for it; and
                  1. the effect of section 272ZA(1), 272ZB(1), or 272ZC(1)(a) (as applicable).

                    1. If a person’s certification is suspended or revoked, the responsible MCMCB must notify them in writing of the suspension or revocation and the reasons for it.

                    2. The chief executive may exercise the powers of a responsible MCMCB under this section (whether or not the responsible MCMCB has exercised those powers in relation to the same manufacturer in the same period).

                    Notes
                    • Section 272W: inserted, on , by section 68 of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).