a typical length for web 16 is 1 inch insulating panels 10 for use in conjunction with such 1 inch strips are consequently cut longitudinally along side edge 12 at 1 inch from the major face which will abut exterior wall 20 the remaining extension of the cut panels beyond kerf 14 into the building interior will depend on their total thickness insulating panels with thicknesses in the range from 1 5 to 2 inches will then project interiorly 0 5 to 1inch beyond kerf 14 and enclosed flange 18 of the furring strip the z furring strips 15 are formed with a flat central web 16 which is for example approximately 20 to 25 gauge in thickness thus when adjoining panels 10 are placed to each side of such strip the flat surface of side edge 12 of the one panel can be brought into contact with the flat surface of the opposed side edge 13 of the other panel due to this flatness of web 16 the result is that web 16 and flange 18 of the metal strip become tightly enclosed by the panels whose insulating core material 11 significantly combats thermal short circuiting by the strip further protection of the wall assembly is suitably afforded by the application of a sealing tape 23 as a vapor barrier over the joints between adjoining panels 10 the inside surface of the insulation panels 10 is covered by any suitable interior surfacing as illustrated in fig2 and 3 sheets 24 of gypsum board are attached to flanges 18 of the furring strips by suitable fasteners 25 such as nails or screws although.