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31 U.S. Code § 3905. Payment provisions relating to construction contracts
(a) In the event that a contractor, after making a certified payment request to an agency pursuant to section 3903(b) of this title, discovers that a portion or all of such payment request constitutes a payment for performance by such contractor that fails to conform to the specifications, terms, and conditions of its contract (hereafter in this subsection referred to as the “unearned amount”), then the contractor shall—
(1)
notify the agency of such performance deficiency; and
(2) be obligated to pay the Government an amount equal to interest on the unearned amount (computed in the manner provided in section 3903(c) of this title), from the date of the contractor’s receipt of such unearned amount until—
(A)
the date the contractor notifies the agency that the performance deficiency has been corrected; or
(B)
the date the contractor reduces the amount of any subsequent certified application for payment to such agency by an amount equal to the unearned amount.
(b) Each construction contract awarded by an agency shall include a clause that requires the prime contractor to include in each subcontract for property or services entered into by the prime contractor and a subcontractor (including a material supplier) for the purpose of performing such construction contract—