Payments under construction contracts.

CFR · 2024-01-01 · US · Title 5

(a) (1) An agency may approve a request for progress payment if the application meets the requirements specified in paragraph (b) of this section; (2) The certification by the prime vendor as defined in paragraph (b)(2) of this section is not to be construed as final acceptance of the subcontractor's performance; (3) The agency shall return any such payment request which is defective to the vendor within seven days after receipt, with a statement identifying the defect(s); (4) A vendor is obligated to pay interest to the Government on unearned amounts in its possession from: (i) The eighth day after receipt of funds from the agency until the date the vendor notifies the agency that the performance deficiency has been corrected, or the date the vendor reduces the amount of any subsequent payment request by an amount equal to the unearned amount in its possession, when the vendor discovers that all or a portion of a payment received from the agency constitutes a payment for the vendor's performance that fails to conform to the specifications, terms, and conditions of its contract with the agency, under 31 U.S.C. 3905(a); or (ii) The eighth day after the receipt of funds from the agency until the date the performance deficiency of a subcontractor is corrected, or the date the vendor reduces the amount of any subsequent payment request by an amount equal to the unearned amount in its possession, when the vendor discovers that all or a portion of a payment received from the agency

official document · source cfr-2024 · id 5:§ 1315.14