Paragraph 255 IndemnityI1

England, Wales and Scotland

(1)

Subject to sub-paragraphs (2) and (3), if by reason or in consequence of the construction of any of the works referred to in paragraph 249, any damage is caused to the Suez site, or there is any interruption in any service provided, or in the supply of any goods, by Suez, the undertaker must—

(a)

bear and pay the cost reasonably incurred by Suez in making good such damage or restoring the supply; and

(b)

make reasonable compensation to Suez for any other expenses, loss, damages, penalty or costs incurred by Suez, by reason or in consequence of any such damage or interruption.

(2)

Nothing in sub-paragraph (1) imposes any liability on the undertaker with respect to—

(a)

any damage or interruption to the extent that it is attributable to the act, neglect or default of Suez, its officers, employees, servants, contractors or agents; or

(b)

any indirect or consequential loss or loss of profits by Suez.

(3)

Suez must give the undertaker reasonable notice of any such claim or demand and no settlement or compromise is to be made without the consent of the undertaker which, if it withholds such consent, has the sole conduct of any settlement or compromise or of any proceedings necessary to resist the claim or demand.

(4)

Suez must use its reasonable endeavours to mitigate in whole or in part and to minimise any costs, expenses, loss, demands, and penalties to which the indemnity under this paragraph 254 applies. If requested to do so by the undertaker, Suez must provide an explanation of how the claim has been minimised or details to substantiate any cost or compensation claimed pursuant to sub-paragraph (1). The undertaker shall only be liable under this paragraph 254 for claims reasonably incurred by Suez.

Annotations

Commencement

I1: Sch. 12 para. 255 in force at 11.3.2024, see art. 1