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27.—(1) The undertaker is responsible for and must indemnify the Agency against all costs and losses not otherwise provided for in this Part of this Schedule which may be incurred or suffered by the Agency by reason of—
(a)the construction, operation or maintenance 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, operation or maintenance of the authorised development or dealing with any failure of the authorised development.
(2) In sub-paragraph (1), “costs” include—
(a)expenses and charges;
(b)staff costs and overheads; and
(c)legal costs.
(3) The undertaker must indemnify the Agency against all liabilities, claims and demands arising out of or in connection with the authorised development or works otherwise outside of the matters referred to in sub-paragraphs (1)(a)and (1)(b).
(4) In sub-paragraph (3)—
(a)“claims” and “demands” include as applicable—
(i)costs (within the meaning of sub-paragraph (2)) incurred in connection with any claim or demand; and
(ii)any interest element of sums claimed or demanded; and
(b)“liabilities” include—
(i)contractual liabilities;
(ii)tortious liabilities (including liabilities for negligence or nuisance);
(iii)liabilities to pay statutory compensation or for breach of statutory duty; and
(iv)liabilities to pay statutory penalties imposed on the basis of strict liability (but does not include liabilities to pay other statutory penalties).
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