Prior to the institution of arbitration or litigation concerning any contract, claim, or controversy, the chief purchasing officer is authorized, subject to any limitations or conditions imposed by regulations, to settle, compromise, pay, or otherwise adjust the claim, by or against, or controversy with a contractor relating to a contract entered into by the department of administration on behalf of the state or any state agency, including a claim or controversy based on contract, mistake, misrepresentation, or other cause for contract modification or rescission, but excluding any claim or controversy involving penalties or forfeitures prescribed by statute or regulation where an official other than the chief purchasing officer is specifically authorized to settle or determine the controversy.
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