(a) in the examination or approval of plans under this Part of this Schedule; or  (b) in the inspection of the construction of the specified works or any protective works  required by the Agency under this Part of this Schedule; and  (c) in the carrying out of any surveys or tests by the Agency which are reasonably required in  connection with the construction of the specified works.  27. —(1) The undertaker is responsible for and must indemnify the Agency against all costs and  losses not otherwise provided for in this Part of this Schedule which may be incurred or suffered  by the Agency by reason of—  (a) the construction, operation or maintenance of any specified works comprised within the  authorised development or the failure of any such works comprised within them; or  (b) any act or omission of the undertaker, its employees, contractors or agents or others  whilst engaged upon the construction, operation or maintenance of the authorised  development or dealing with any failure of the authorised development.  (2) In sub-paragraph (1), “costs” include—  (a) expenses and charges;  (b) staff costs and overheads; and  (c) legal costs.  (3) The undertaker must indemnify the Agency against all liabilities, claims and demands  arising out of or in connection with the authorised development or works otherwise outside of the  matters referred to in sub-paragraphs (1)(a)and (1)(b).  (4) In sub-paragraph (3)—  (a) “claims” and “demands” include as applicable—  (i) costs (within the meaning of sub-paragraph (2)) incurred in connection with any  claim or demand; and  (ii) any interest element of sums claimed or demanded; and  (b) “liabilities” include—  (i) contractual liabilities;  (ii) tortious liabilities (including liabilities for negligence or nuisance);  (iii) liabilities to pay statutory compensation or for breach of statutory duty; and  (iv) liabilities to pay statutory penalties imposed on the basis of strict liability (but does  not include liabilities to pay other statutory penalties).  28.  The Agency must give to the undertaker reasonable notice of any such claim or demand and  no settlement or compromise thereof is to be made without the agreement of the undertaker which  agreement must not be unreasonably withheld.  29.  The fact that any work or thing has been executed or done by the undertaker in accordance  with a plan approved by the Agency, 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.  30.  Any difference or dispute arising between the Agency and the undertaker under this Part of  this Schedule must, unless otherwise agreed in writing between the Agency and the undertaker, be  determined by arbitration in accordance with article 62 (arbitration).  133