OMQ · For Funders & Capital Partners

How we mitigate risk on every
OMQ-backed modular project

By the time a manufacturer is engaged on an OMQ-backed project, it has passed a 72-criterion, 720-point independent assessment with 16 non-negotiable hard gates, is subject to contractual quality obligations cascaded from Australian standards, and is under active in-factory surveillance by Unison Modular.

This is not manufacturer self-certification. It is jointly owned, independently verified, and operationally supervised — with screening and re-assessment obligations built into the platform.

72

Criteria

16

Hard gates

12

Screening regimes

90d

Re-screen cadence

Joint Venture

Two parties with aligned commercial interests

The OMQ programme is co-owned and jointly operated by Factory2Key Pty Ltd (F2K, Australia) and Unison Projects Malaysia Sdn Bhd (Unison Modular). F2K contributes the Australian market position, compliance framework design, the Checkpoint Project Management System, and funder relationships. Unison Modular contributes offshore manufacturing expertise, supply-chain management, and in-factory surveillance.

Both parties hold a commercial stake in the integrity of every assessment and every production run. Neither party profits from passing a manufacturer that should not be passed.

Pre-Qualification Rubric

The 4-stage, 720-point assessment

No manufacturer is engaged on an OMQ-backed project without first completing the full assessment. Tier 1 (600–720) is warranty-eligible. Tier 2 (480–599) is conditionally approved. Tier 3 (360–479) requires substantial remediation. Below 360 — or any single hard-gate fail — is a Fail.

Stage
Points
Criteria
Hard gates
Stage 1Ownership & Governance
180
18
6
Stage 2Financial Standing
180
18
3
Stage 3Production Capability
180
18
4
Stage 4Standards & NCC Compliance
180
18
3
Total
720
72
16

Each criterion is scored against three evidence anchors: 0 (no evidence / materially non-compliant), 5 (partial or self-attested), 10 (independently verified). Self-attestation alone cannot achieve a score above 5 on any criterion. Tier 1 eligibility requires independent verification.

The 16 Hard Gates

Non-negotiable. A single fail disqualifies.

A manufacturer that fails any single hard gate does not proceed, regardless of total score. Gates are scored on the same 0/5/10 anchor system as weighted criteria, but require a minimum of 5/10 — a 0 fails the gate.

Beneficial ownership disclosure — UBO threshold ≥25%
Corporate registration and good-standing certificate
Sanctions screening — DFAT, OFAC SDN + Non-SDN, UN, EU, OFSI, SECO, MAS
Modern Slavery / forced labour exposure (Xinjiang nexus)
Trade-restriction list screening — BIS, UFLPA, AECA, DoD CCMC
Factory operating licence current and valid
Audited financial statements — three-year minimum
Positive net worth and solvency confirmed
NCC-compliant materials capability verified
In-factory QMS operational (ISO 9001 or equivalent)
Prototype delivery record to Australian standard
Live insurance — product liability, professional indemnity, marine cargo
PCDC readiness confirmed by Australian Building Surveyor
ITP prepared and accepted
No material unresolved litigation in key jurisdictions
No adverse regulatory action in past five years

Automated Screening

12 regimes, screened by API

Every OMQ-pre-qualified manufacturer is screened against eight sanctions regimes and four trade-restriction regimes via the OpenSanctions hosted dataset. Screening runs at three triggers: on initial assessment, on a 90-day cadence thereafter via a scheduled cron, and on demand when a trigger event is recorded.

Sanctions regimes (8)

DFAT (Australia)
OFAC SDN (United States)
OFAC Non-SDN Consolidated (United States)
UN Security Council
EU Consolidated
UK OFSI / HMT
SECO (Switzerland)
MAS (Singapore)

Trade-restriction regimes (4)

BIS Denied Persons (United States)
UFLPA Entity List (United States)
AECA Debarred (United States)
DoD Chinese Military Companies (United States)

A note on list coverage

Lists not covered by the automated provider feed are captured against the relevant gate criterion as an operator-uploaded screening report. The corresponding evidence file is part of the audit trail and the gate cannot be cleared without it. Currently operator-uploaded:

  • ·BIS Entity List (United States)
  • ·BIS Military End-User List (United States)
  • ·BIS Unverified List (United States)

Note on China's counter-sanctions framework: China's April 2026 Regulations on Countering Improper Extraterritorial Jurisdiction create a tension between Western sanctions-compliance obligations and Chinese law. The OMQ programme acknowledges this risk and conducts its screening through appropriately structured arrangements. Funders should obtain their own legal advice specific to their jurisdiction.

Ongoing Monitoring

The rating does not go stale

An OMQ rating is not a one-time certificate. Rated manufacturers are subject to ongoing monitoring obligations as a condition of maintaining their rating.

Cadence

Quarterly automated screening

Every 90 days, the platform re-runs the full multi-regime screen against the manufacturer's current name and country. Hits are surfaced to the operator immediately.

Cycle

Annual full re-assessment

Every 365 days, the manufacturer is re-assessed against the full 72-criterion rubric. A manufacturer that falls below its rated tier has its rating suspended pending remediation.

On-demand

Trigger-event re-screens

A re-screen is run on demand when a trigger event is recorded: ownership change, financial breach, sanctions hit, regulatory action, factory relocation, customer dispute.

Trigger events the platform watches for

  • Change of beneficial ownership or senior management
  • Material adverse change in financial position (credit downgrade, covenant breach, facility withdrawal)
  • Sanctions-list hit or trade-restriction-list addition
  • Regulatory action by Chinese or Australian authorities
  • Adverse media coverage indicating material reputational risk
  • Factory relocation or material change to production capacity
  • Customer complaint or dispute arising from an Australian delivery

In-Production Surveillance

Unison Modular on the factory floor

Once a manufacturing contract is executed, Unison Modular provides active in-factory surveillance for the duration of production. This is not periodic desk review — it is on-the-ground management of the manufacturing process.

ITP hold-point sign-offs

The Inspection and Test Plan designates specific hold points that require Unison Modular sign-off before production advances. No stage progresses without sign-off.

Materials verification

NCC-compliant materials are verified at receipt against the approved materials schedule before incorporation into the build.

Production milestone reporting

Progress reports are issued at each ITP milestone to both joint-venture parties and, where required, to the funder.

Defect identification & remediation

Defects identified during production are logged, remediated, and re-inspected before proceeding. Systemic issues trigger a stop-work review.

Pre-Shipment Inspection (PSI)

Independent PSI by a registered third-party inspector before any unit is loaded for shipment.

Compliance consultant sign-off

Australian compliance consultants (Building Surveyor, structural engineer, licensed trades) sign off on completed units before shipment.

Progress-payment alignment

The surveillance structure is designed to map onto a progress-payment model. Each ITP hold-point can correspond to a payment milestone, ensuring that drawdowns are tied to verified physical progress — not to the manufacturer's self-reported completion.

Contractual Allocation

Risk cascaded through two contracts

Risk is allocated through a cascading two-contract structure. The OMQ programme sits above the contract structure as the pre-qualification and standards layer; the contracts operationalise those standards into binding obligations.

Contract
Parties
Basis
Supply Contract
Factory2Key × Unison Modular
AS4902 (Australian Standard for head contracts) with F2K Special Conditions. DDP Incoterms 2020 delivery to nominated Australian port(s). Fixed pricing.
Manufacturing Contract
Unison Modular × Manufacturer
Cascades AS4902 obligations downstream to the manufacturer. Unison Modular is the contracting party; the manufacturer has no direct recourse to F2K.
  • Fixed DDP pricing — currency and logistics risk sits with Unison Modular and the manufacturer, not the funder.
  • Prototype delivery obligation — first unit produced to specification before main production commences.
  • ITP as contract schedule — binding attachment, not a discretionary quality document.
  • PCDC as delivery condition — Partial Certificate of Design Compliance from an Australian Building Surveyor is a condition precedent to shipment.
  • Liquidated damages — delay provisions cascaded through both contracts.
  • Insurance warranties — product liability, professional indemnity, marine cargo are contract conditions.
  • Open-book pricing — all supply pricing at cost with agreed risk allowances plus a stated margin.

Risk Summary

Mapped risks and controls

Risk
Control
Undisclosed ownership, sanctions exposure, fraudulent credentials
16 hard gates: UBO disclosure; automated multi-regime sanctions screening; trade-restriction list checks; bilingual adverse-media screening.
Manufacturer insolvency mid-production; inability to deliver
Stage 2 financial assessment: three-year audited accounts, solvency gate, working-capital ratio, order-book analysis. DDP contract structure limits funder exposure.
Units not compliant with the Australian NCC; council rejection
NCC-compliant design from Phase 1; PCDC from an Australian Building Surveyor as a shipment condition; ITP hold-points at compliance-critical stages.
Defective units; materials substitution; production shortcuts
In-factory ITP surveillance by Unison Modular; pre-shipment inspection; materials verification at receipt; prototype protocol before main production.
Delay, port issues, logistics failure
DDP Incoterms: delivery risk sits with the manufacturer / Unison Modular to the nominated Australian port. Marine cargo insurance is a contract condition.
Xinjiang-nexus materials; forced labour in supply chain
Stage 1 hard gate: supply-chain map, UFLPA list check, factory-location attestation. Ongoing bilingual monitoring.
Cost overrun post-commitment; foreign-exchange exposure
Fixed DDP pricing in Australian Dollars; open-book basis with agreed risk allowances; price locked at contract execution.
Single-manufacturer dependency
OMQ maintains a rated bench of manufacturers; preferred and reserve manufacturers identified at tender stage.

Common Questions

FAQ

Who runs the assessment?

The OMQ programme is a joint venture between Factory2Key Pty Ltd (F2K, Australia) and Unison Projects Malaysia Sdn Bhd (Unison Modular). Unison Modular executes the factory-level assessment; F2K holds and publishes the resulting rating. Neither party profits from passing a manufacturer that should not be passed.

How is the rating different from self-certification?

Self-attested evidence cannot score above 5/10 on any of the 72 criteria. Tier 1 eligibility (warranty-eligible) requires independent verification at the 10-point level on every gate criterion and on the majority of weighted criteria. Verification is performed by registered audit firms, Australian Building Surveyors, structural engineers and independent screening services.

What stops a rating from going stale?

Two mechanisms. First, every rated manufacturer is re-screened against twelve sanctions and trade-restriction regimes on a 90-day cadence; the dashboard surfaces overdue screens to the operator. Second, every rated manufacturer is subject to an annual re-assessment against the full 72-criterion rubric; a manufacturer that falls below its rated tier has its rating suspended pending remediation.

What happens if something changes between scheduled checks?

Trigger-event re-screens run on demand outside the quarterly cadence — change of beneficial ownership, material adverse change in financial position, sanctions hit, regulatory action, factory relocation, or any customer dispute arising from an Australian delivery. The platform exposes a one-click control for any rated manufacturer.

What about the BIS Entity List, MEU List, and Unverified List?

These US Commerce trade-restriction lists are covered by operator-uploaded screening reports captured against the relevant gate criterion (OWN-12), rather than the automated provider feed. The corresponding evidence file is part of the audit trail; the gate cannot be cleared without it.

How is contract risk allocated?

A two-contract structure cascades obligations downstream. The supply contract (F2K × Unison Modular) is on AS4902 with F2K Special Conditions and DDP Incoterms 2020 delivery to a nominated Australian port. The manufacturing contract (Unison Modular × manufacturer) cascades the same obligations to the manufacturer. The manufacturer has no direct recourse to F2K.

Is production drawdown safe?

The in-production surveillance regime is designed to map onto a progress-payment model. Each ITP hold-point can correspond to a payment milestone, ensuring drawdowns are tied to verified physical progress — not to the manufacturer's self-reported completion.

How are translations and document integrity handled?

The OMQ programme embeds a Shanghai-based bilingual assessor — an architect with international project experience across China, Singapore and Australia, native in Mandarin. Chinese-language corporate, financial and technical documents are reviewed in source language before translation is required.

Talk to us

Contact the joint venture

Factory2Key Pty Ltd

Dennis McMahon

OMQ Programme Director

dennis@factory2key.com.au

+61 402 612 471

Unison Modular

Matthew Williams

Managing Director

matt@unisonmodular.com

+60 13 376 8464

Factory2Key Pty Ltd · ACN 691 672 803. This page is informational and does not constitute financial advice. Funders should obtain their own legal, financial and compliance advice specific to their jurisdiction.