Where an appellate court finds that an arbitrator has erred in principle in exercising a costs discretion, the appropriate course is ordinarily to remit the costs question to the arbitrator rather than decide it afresh, particularly where the arbitrator has painstakingly considered each claim and observed the conduct of the arbitration. A party's failure to raise claims for time extensions and variation costs during the normal course of contract administration, resulting in those claims being advanced for the first time in arbitration proceedings, is a material consideration in the exercise of the costs discretion.
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