Malaysian Renovation / Construction Law |
What Kind of Evidence Can Prove That a
Third Party Has Made Payment❓ Part 1

Key Issue with the Counterclaim: Insufficient Evidence and an Incomplete Chain

Many people ask: since the opposing party claimed they engaged a third party and incurred significant costs, did they produce evidence?

The answer is: they did submit some documents.
However, based on the lower court’s judgment, the main issue was not whether they made the claim, but that the evidence was insufficient and the evidential chain incomplete.

1）Claim of third-party rectification, but key witness absent
📌 “We engaged a third-party contractor, so you must bear the cost.”
However, to prove what work was done, why it was necessary, and whether the cost was reasonable, the third-party contractor is a key witness.
In this case, the third party did not testify, leaving a critical gap.

2）Lack of objective records of rectification works
Courts place strong weight on objective and verifiable evidence, such as:
📌 Before-and-after photos
📌 Site records during rectification
📌 Detailed lists of rectification works
📌 Evidence of the location, extent, and severity of defects

Such materials were largely lacking in this case.

3）Limited documents that do not clearly correspond to “this project”
Even where payment documents were produced, the court must determine:
📌 Whether the payment was indeed made to the third-party contractor
📌 Whether it was for rectifying the defects in this specific project
📌 Whether the costs were necessary and reasonable

If the documents lack clarity and cannot be matched to a specific project, the court cannot simply infer the claim.

Conclusion: A Counterclaim Must Be Proven, Not Merely Asserted

This case highlights a practical point:
In construction disputes, especially where counterclaims for rectification costs are involved, the court requires a rigorous evidential chain.

📌 Whether key witnesses (especially third-party contractors) testify
📌 Whether site records are complete
📌 Whether documents correspond to specific works and projects
📌 Whether the costs are necessary and reasonable