Paragraph 12 I1

Without prejudice to the other provisions of this Part of this Schedule, the undertaker shall indemnify the Agency from all claims, demands, proceedings, costs, damages or expenses or loss, which may be made or taken against, or recovered from or incurred by the Agency by reason of—

which is caused by the construction of any of the specified works or any act or omission of the undertaker, its contractors, agents or employees whilst engaged upon the specified works.

The Agency shall give to the undertaker reasonable notice of any such claim or demand and no settlement or compromise of any such claim or demand shall be made without the consent of the undertaker which shall not be unreasonably withheld.

Prior to incurring any expense which it may seek to recover under this paragraph, the Agency shall, except in a case of urgency, serve notice on the undertaker informing it of the Agency’s intentions and requiring it within such time as the Agency may reasonably specify to take such steps as may be reasonably practicable to avoid the need for the Agency to incur such costs.

Nothing in this Part of this Schedule shall impose any liability on the undertaker in respect of any damage to the extent that it is attributable to the negligent act or omission of the Agency, its officers, servants or, if not the undertaker, its contractors or agents.