Section 9201 Of Chapter 9. Claims And Disputes From California Public Contract Code >> Division 2. >> Part 1. >> Chapter 9.
9201
. (a) A public entity shall have full authority to compromise
or otherwise settle any claim relating to a contract at any time.
(b) The public entity shall include provisions in a public works
contract for timely notification of the contractor of the receipt of
any third-party claim, relating to the contract.
(c) The public entity shall be entitled to recover its reasonable
costs incurred in providing the notification required by subdivision
(b).