This below-grade wall assembly consists of rigid mineral fibre insulation placed on the exterior of the concrete foundation wall. A wood stud wall is often constructed on the interior of the concrete wall to provide room for electrical and plumbing services.

High effective R-values are achieved by using continuous insulation outside of the concrete structure. The insulation product used in this arrangement should be highly moisture tolerant and suitable for below-grade applications.

In cold climates, insulation placed on the exterior of the wall increases the temperature of the concrete and consequently often reduces the risk of condensation and associated damage to moisture sensitive interior wall components and finishes. Drainage is provided at the exterior of the insulation to eliminate hydrostatic pressure on the wall assembly and reduce the risk of water ingress.