The applicant homeowner succeeded in obtaining a costs order against the first and second respondent builders on a standard basis (County Court scale), together with interest of $2,917.01 on a pre-proceeding rectification expenditure; the application for interest on legal costs was dismissed. The Tribunal applied s 109(3) of the Victorian Civil and Administrative Tribunal Act 1998, departing from the default no-costs position on the basis of the applicant's substantial success on liability and quantum, the relative weakness of the builders' defences, and the nature and complexity of the proceeding. Settlement offers by both sides were analysed under the Hazeldine factors: the applicant's Calderbank offers were found not to have been unreasonably rejected, and the builders' offer was found less favourable than the damages ultimately awarded, so neither set of offers influenced the costs outcome. Interest on damages for monies already expended on rectification was awarded at 10% per annum under the Penalty Interest Rates Act 1983, but reduced by 81 days to account for the applicant's delay in filing closing submissions. The Tribunal declined to award interest on legal costs, finding no authority or statutory power to do so.
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