Paragraph 12

The nominated undertaker shall indemnify the port authority from all claims, demands, proceedings or damages which may be made or given against or recovered from the port authority by reason of any damage to the river or its banks or any works or apparatus of the port authority in the river which is caused by or results from the construction of any tidal work or any act or omission of the nominated undertaker, its contractors, agents or employees whilst engaged upon the work, and from any costs reasonably incurred by the port authority in making good such damage.

The port authority shall give to the nominated undertaker reasonable notice of any such claim or demand and no settlement or compromise thereof shall be made without the consent of the nominated undertaker which, if it notifies the port authority that it desires to do so, shall have the sole conduct of any settlement or compromise or of any proceedings necessary to resist the claim or demand.

Nothing in sub-paragraph (1) above shall impose any liability on the nominated undertaker in respect of silting or scouring.