Abstract: An insulated building has an inner structure forming the interior walls and roof of the building. Elongated wood spacer members are mounted on the exterior of the inner structure preferably with insulated fasteners. The spacer members are spaced from the exterior of the inner structure. Foam insulation covers the exterior of the inner structure to a depth generally flush with the spacer members. Sheeting is applied over the foam to cover the exterior of the building. The building is characterized by an absence of panel joints typically found in buildings of this type. Such joints permit detrimental heat transfer through the insulation.