We show that the ‘orthogonal’ characteristics of the observed rapidity gaps and large forward energy flows in deep inelastic scattering at HERA, can be described within a single framework. Our Monte Carlo model is based on perturbative QCD matrix elements and parton showers together with Lund string model hadronization, but has in addition a new mechanism for soft colour interactions which modifies the perturbative colour structure and thereby the hadronization. Effects of perturbative multiparton emission are investigated and the non-perturbative treatment of the proton remnant is discussed and comparison to the observed transverse energy flow is made. We investigate the resulting diffractive-like properties of the model; such as rapidity gap events, t- and MX-distributions and the diffractive structure function in comparison to H1 data.