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This work aims to optimize the position and thickness of insulation layers in building external wall for climates in the coastal Mediterranean zone and in the inland plateau of Lebanon. A space and an air-conditioning system performance models are developed to predict the space and system loads and associated thermal comfort of occupants. A genetic algorithm is used for the optimization of the life cycle cost of the insulation based on energy load while including the productivity loss associated with thermal discomfort during transient periods. For continuous operation of building HVAC system, adding insulation reduces life cycle cost by 20% over current thermal code requirements. During intermittent operation, locating the insulation at the inner side of the walls results in 15% reduction in energy load compared to locating it on the outer wall. The optimum thickness varied between 3 cm and 5 cm depending on wall orientation climate season.

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