52.5  Conduct of Claims

This provisions of this clause 52.5 shall apply to the conduct by a party giving an indemnity under this Contract (the Indemnifier) in respect of claims made by a third person against a party having (or claiming to have) the benefit of the indemnity (the Beneficiary):

(a)  if the Beneficiary receives any notice, demand, letter or other document concerning any claim from which it appears that the Beneficiary is, or may become entitled to, indemnification under this Contract or any of the Project Documents, the Beneficiary shall give notice in writing to the Indemnifier as soon as reasonably practicable and in any event within twenty (20) Business Days of receipt of such document and shall supply a copy of the relevant document to the Indemnifier;

(b)  subject to the provisions of this clause 52.5 (and in particular clause 52.5(e)), following the service of a notice by a Beneficiary pursuant to clause 52.5(a), where it appears that the Beneficiary is, or may become, entitled to indemnification from the Indemnifier in respect of all (but not part only) of the liability arising out of the claim, the Indemnifier shall (subject to indemnifying the Beneficiary to its reasonable satisfaction against all costs and expenses that it may incur by reason of such action) be entitled to:

(i)  dispute the claim in the name of the Beneficiary at the Indemnifier's own expense; and

(ii)  take conduct of any defence, dispute, compromise or appeal of the claim and of any incidental negotiations,

and the Beneficiary shall give the Indemnifier all reasonable co-operation, access and assistance for the purposes of considering and resisting such claim;

(c)  with respect to any claim conducted by the Indemnifier pursuant to clause 52.5(b):

(i)  the Indemnifier shall keep the Beneficiary fully informed and consult with it about material elements of the conduct of the claim;

(ii)  the Indemnifier shall not bring the name of the Beneficiary into disrepute; and

(iii)  the Indemnifier shall not pay or settle such claims without the prior consent of the Beneficiary, such consent not to be unreasonably withheld or delayed;

(d)  the Beneficiary shall (without prejudice to its duty to mitigate) be free to pay or settle any claim on such terms as it may in its absolute discretion think fit and without prejudice to its rights and remedies under this Contract if:

(i)  the Indemnifier is not entitled to take conduct of the claim in accordance with clause 52.5(b);

(ii)  the Indemnifier fails to notify the Beneficiary of its intention to take conduct of the relevant claim within twenty (20) Business Days of the notice from the Beneficiary under clause 52.5(a) or notifies the Beneficiary that it does not intend to take conduct of the claim; or

(iii)  the Indemnifier fails to comply in any material respect with the provisions of clause 52.5(c) within twenty (20) Business Days of notice from the Beneficiary of such failure;

(e)  the Beneficiary shall be entitled at any time to give notice to the Indemnifier that it is retaining or taking over (as the case may be) the conduct of any defence, dispute, compromise or appeal of any claim (or of any incidental negotiations) to which clause 52.5(b) applies.  On receipt of such notice the Indemnifier shall promptly take all steps necessary to transfer the conduct of such claim to the Beneficiary, and shall provide to the Beneficiary all reasonable co-operation, access and assistance for the purposes of considering and resisting such claim.  If the Beneficiary gives any notice pursuant to this clause 52.5(e), then the Indemnifier shall be released from any liability under its indemnity under clause 52.1 and, without prejudice to any accrued liabilities, any liability under its indemnity given pursuant to clause 52.5(b) in respect of such claim;

(f)  if the Indemnifier pays to the Beneficiary an amount in respect of an indemnity and the Beneficiary subsequently recovers (whether by payment, discount, credit, saving, relief or other benefit or otherwise) a sum which is directly referable to the fact, matter, event or circumstances giving rise to the claim under the indemnity, the Beneficiary shall forthwith repay to the Indemnifier whichever is the lesser of:

(i)  an amount equal to the sum recovered (or the value of the saving or benefit obtained) less any out-of-pocket costs and expenses reasonably and properly incurred by the Beneficiary in recovering the same; and

(ii)  the amount paid to the Beneficiary by the Indemnifier in respect of the claim under the relevant indemnity,

provided that there shall be no obligation on the Beneficiary to pursue such recovery and further provided that the Indemnifier is repaid only to the extent that the amount of such recovery aggregated with any sum recovered from the Indemnifier exceeds any loss sustained by the Beneficiary (including for this purpose indirect or consequential losses or claims for loss of profits which are excluded by this Contract from being recovered from the Indemnifier);

(g)  any person taking any of the steps contemplated by clauses 52.5(b) to 52.5(f) (inclusive) shall comply with the requirements of any insurer who may have an obligation to provide an indemnity in respect of any liability arising under this Contract.