An insulation and paneling apparatus comprising a first panel member supported by the inner frame of a pre-engineered building, a layer of compressible insulation adjacent to the first panel member, a spacer member supported over the insulation layer by a plurality of fastener members penetrating the insulation and disposing the spacer member a predetermined distance from the first panel member, and a second panel member supported by the spacer member, the fastener members designed such that the insulation substantially retains its prepenetration characteristics and designed to attach to either the first panel member or the inner building frame.