Illustration Source: CHBA Manual, Fig. 9.18, Pg.153

Illustration Source: Summerhill

A good building practice for new home construction is to eliminate the thermal bridge between the slab and the footing. This will reduce the heat loss caused by thermal bridging. Not insulating the slab edge increases the estimated energy consumption by as much as 5%. In fact, insulating between the slab edge and the foundation wall saves about as much energy as insulating under the entire slab in a non-heated basement slab.

Capillary Action and Capillary Breaks:

Capillary action is when liquid water moves in any direction through porous materials or across small gaps. Dampproofing foundation walls does not stop capillary action from occurring through the footings. A water proof membrane or bituminous coating should be placed on the footing where the foundation wall will sit, to provide a capillary break.