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28.—(1) Without prejudice to the other provisions of this Part of this Schedule, the undertaker is responsible for and must make reasonable compensation to the drainage authority for all costs and losses not otherwise provided for in this Part of this Schedule which may be reasonably incurred or suffered by the drainage authority by reason of—
(a)the construction of any specified works comprised within the authorised works; or
(b)any act or omission of the Applicant, its employees, contractors or agents or others whilst engaged upon the construction of the authorised works.
(2) For the avoidance of doubt, in sub-paragraph (1), “costs” includes—
(a)expenses and charges;
(b)staff costs and overheads;
(c)legal costs;
(d)liabilities, claims and demands;
and “losses” includes physical damage.
(3) For the avoidance of doubt, in sub-paragraph (2), liabilities includes—
(a)contractual liabilities;
(b)tortious liabilities;
(c)liabilities to pay statutory compensation for breach of statutory duty;
(d)liabilities to pay statutory penalties imposed on the basis of strict liability (but does not include liabilities to pay other statutory penalties).
(4) The drainage authority must give to the undertaker reasonable notice of any such claim or demand and no settlement or compromise shall be made without the agreement of the undertaker which agreement shall not be unreasonably withheld or delayed.
(5) The fact that any work or thing has been executed or done by the undertaker in accordance with a plan approved by the drainage authority, 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.
(6) The drainage authority must not compromise or settle any such claim or make any admission which might be prejudicial to the claim without the agreement of the undertaker which agreement must not be unreasonably withheld or delayed.
(7) The drainage authority must, at all times take reasonable steps to prevent and mitigate any such claims, demands, proceedings, costs, damages, expenses or loss.
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