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first the site is excavated and rebar is placed ing to local code formwork is placed and the footing and stem wall are poured with anchor bolts placed ing to local code next a four inch layer of gravel is placed to facilitate drainage underneath the slab and to act as a capillary break it also allows the removal of radon from beneath the slab if radon is present lengths of extruded polystyrene are placed on the interior perimeter of the stem wall to act as the isolation material and to provide a thermal break for the slab extruded polystyrene insulation is placed on top of the gravel bed followed by a six mil polyethylene vapor retarder note that the edges should extend to the exterior edge of the stem wall then the slab is poured still seal is placed at the edge of the slab followed by the termite shield and another layer of silsil then the stud walls are built on the outside wall a bead of sealant is used to seal the bottom of the weather barrier to the termite shield