2010 California Code
Public Contract Code
Chapter 9. Claims And Disputes

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).


9203.  (a) Payment on any contract with a local agency for the
creation, construction, alteration, repair, or improvement of any
public structure, building, road, or other improvement, of any kind
which will exceed in cost a total of five thousand dollars ($5,000),
shall be made as the legislative body prescribes upon estimates
approved by the legislative body, but progress payments shall not be
made in excess of 95 percent of the percentage of actual work
completed plus a like percentage of the value of material delivered
on the ground or stored subject to, or under the control of, the
local agency, and unused. The local agency shall withhold not less
than 5 percent of the contract price until final completion and
acceptance of the project. However, at any time after 50 percent of
the work has been completed, if the legislative body finds that
satisfactory progress is being made, it may make any of the remaining
progress payments in full for actual work completed.
   (b) Notwithstanding the dollar limit specified in subdivision (a),
a county water authority shall be subject to a twenty-five thousand
dollar ($25,000) limit for purposes of subdivision (a).