How do I draft a reply and defence to counterclaim? UK General Litigation & Small Claims

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This is a "How To" on how to respond not just to a defence, but a COUNTERCLAIM - this can often take claimants buy surprise, where they have issued a claim without realising that there was any problem with the work that they had performed.
How to draft your defense
general tips and points
put only relevant points
at the end summarise your points
give your point of view and address the problems
There are steps you need to follow
How you need to structure your response
What you need to address
Real life example
Detailed explanation
You need to address every point of their claim
Make sure everything you say is accurate and factual
Tips to counterclaim
General Litigation in the UK
Tips on claims