Paragraph 14 Indemnities and CostsI1

England and Wales

(1)

The undertaker shall be responsible for and make good to the Agency all financial costs or losses not otherwise provided for in this Part of this Schedule which may reasonably be incurred or suffered by the Agency by reason of—

(a)

the construction or operation of the authorised project or the failure of any works comprised within it, or;

(b)

any act or omission of the undertaker, its employees, contractors or agents or others whilst engaged upon the construction or operation of the authorised project or dealing with any failure of the authorised project;

and the undertaker shall indemnify the Agency from and against all claims and demands arising out of or in connection with the authorised project or any such failure, act or omission.

(2)

The fact that any act or thing may have been done—

(a)

by the Agency on behalf of the undertaker; or

(b)

by the undertaker, its employees, contractors or agents in accordance with plans or particulars submitted to or modifications or conditions specified by the Agency, or in a manner approved by the Agency, or under its supervision or the supervision of its duly authorised representative;

shall not (if it was done or required without negligence on the part of the Agency or its duly authorised representative, employee, contractor or agent) excuse the undertaker from liability under the provisions of this paragraph.

(3)

In complying with the indemnity provisions pursuant to this paragraph the undertaker’s liability shall either be limited to a sum to be agreed between the parties or unlimited.

(4)

The Agency shall give the undertaker reasonable notice of any such claim or demand as is referred to in paragraph 14(1), and no settlement or compromise of any such claim or demand shall be made without the prior consent of the undertaker.

Annotations

Commencement

I1: Sch. 16 Pt. 3 para. 14 in force at 24.9.2014, see art. 1