(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).
(Amended by Stats. 2002, Ch. 315, Sec. 1. Effective January 1, 2003.)