Abstract: The present invention relates to construction materials and more specifically, to a continuous composite exterior insulation system and cladding used in the construction of building walls and structure, to control heat transfer, rain-water penetration, air and water vapor transmission while providing fire protection to a building enclosure. This invention relates to a thermal upgrade of existing and new buildings. The wall substrate is arranged for receipt of subsequent layers of cladding materials. Thermo-grid of insulated composite strapping is mounted on the surface of the said wall and a layer of continuous insulation e.g. polyurethane foam is applied between the thermo-grid strapping leaving a thin air gap between it and the next layer of the fire protective composite.