Abstract: A method of constructing a building using template-directed prefabricated units. The templates for each unit are grooved according to a design plan. The grooves are sized and positioned for use as alignment guides to accept building components or to define openings, such as doors or windows, in the unit. The building components are positioned in the template, checked and adjusted, if necessary, to ensure they are in square, and fastened to each other. A solid backing is fastened, which comprises the exterior of the completed unit. In one embodiment, the solid backing may be the template itself. The units are transported to the construction site, where they can be immediately assembled and fastened to adjacent units so that the solid backings form the exterior structure of the building.