Public Contract Code section 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).

Source: Section 9201, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=PCC§ionNum=9201.­ (updated Jan. 1, 2003; accessed Jul. 7, 2025).

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Verified:
Jul. 7, 2025

§ 9201's source at ca​.gov