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37.—(1) The undertaker is responsible for and must indemnify the Agency against all costs and losses not otherwise provided [F1for] in this Part of this Schedule which may be incurred or suffered by the Agency by reason of—E+W+S
(a)the construction, of any specified works comprised within the authorised development or the failure of any such works comprised within them; or
(b)any act or omission of the undertaker, its employees, contractors or agents or others whilst engaged upon the construction of the authorised development or dealing with any failure of the authorised development.
(2) For the avoidance of doubt, in sub-paragraph (1)—
“costs” includes—
expenses and charges;
staff costs and overheads; and
legal costs;
“losses” includes physical damage.
(3) Subject to sub-paragraph (7), the undertaker must indemnify the Agency against all liabilities, claims and demands arising directly out of or directly in connection with the construction, maintenance or failure of the authorised development or out of the matters referred to in sub-paragraph (1)(a) and (1)(b).
(4) For the avoidance of doubt, in sub-paragraph (3)—
“claims” and “demands” include as applicable—
costs (within the meaning of sub-paragraph (2)) incurred in connection with any claim or demand; and
any interest element of sums claimed or demanded;
“liabilities” includes—
contractual liabilities;
tortious liabilities (including liabilities for nuisance);
liabilities to pay statutory compensation or for breach of statutory duty; and
liabilities to pay statutory penalties imposed on the basis of strict liability (but does not include liabilities to pay other statutory penalties).
(5) The Agency must give to the undertaker reasonable notice of any such claim or demand and no settlement or compromise must be made without the agreement of the undertaker which agreement must not be unreasonably withheld or delayed.
(6) The fact that any work or thing has been executed or done by the undertaker in accordance with a plan approved by the Agency, or to its satisfaction, or in accordance with any directions or award of an arbitrator, does not relieve the undertaker from any liability under the provisions of this Part of this Schedule.
(7) Nothing in this paragraph imposes any liability on the undertaker with respect to any claims, costs, demands, liability or losses to the extent that it is attributable to the act, neglect or default of the Agency, its officers, servants, contractors or agents.
Textual Amendments
F1Word in Sch. 14 para. 37(1) substituted (10.6.2021) by The Great Yarmouth Third River Crossing Development Consent (Correction) Order 2021 (S.I. 2021/692), arts. 1, 2(2)
Commencement Information
I1Sch. 14 para. 37 in force at 15.10.2020, see art. 1
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