JUDGMENT

Tun Abd Majid Tun Hamzah J:

[1] The appellant (defendant) appealed against the learned Sessions Court Judge's ("SCJ") decision in allowing the respondent's (plaintiff) claim and dismissed its counterclaim. The learned SCJ awarded the respondent a sum of RM105,000.00 with costs. Upon hearing the parties I allowed the appeal in part with costs and set aside the order of the SCJ. For ease of reference the parties are referred to as they were in the Court below.

[2] Briefly the facts are as follows. The defendant engaged the plaintiff to renovate the premises he was renting to turn it into a budget hotel and to apply to the City Council for the necessary permits/licences. In April 2014 the plaintiff gave a quotation in the sum of RM567,524.00 ("1st quotation") to which the defendant disagreed. Both parties then negotiated and the defendant fixed a ceiling cost of RM400,000.00.

Thereafter the plaintiff gave a revised figure of RM436,109.00 ("2nd quotation") in June 2015. Both parties met again and further negotiated the work and cost which was eventually reduced to RM334,000.00 (exhibit D16) and ceiling cost of RM400,000.00 was still maintained.

[3] All work to be completed within t