This above-grade wall assembly consists of rigid or semi-rigid insulation placed on the exterior of a conventional above-grade insulated wood-frame wall assembly.

High effective R-values are achieved by using continuous insulation outside of the structural framing and low-conductivity cladding attachments, in combination with insulation in the stud space. In most cases, cladding can be supported by strapping fastened with screws through the rigid insulation.

It is also possible to use low-conductivity cladding attachment systems, such as metal or fiberglass clips or wood blocking.

The exterior insulation product used in this arrangement should not be sensitive to moisture, as it will be exposed to periodic wetting. In cold climates, insulation placed on the exterior of the stud wall increases the temperature of the moisture-sensitive wood sheathing and framing and consequently often improves the durability of the assembly by reducing the risk of condensation and associated moisture damage.