A stem wall is a vertical concrete foundation wall usually with a footing attached. The shear walls must be tied down to the stem wall at each end because that is where the wall will try to lift when fully loaded parallel to it's face by wind or seismic forces. without the tie downs the shear wall would have little or no structural purpose.

You can furr the wall or add a second layer of drywall. Pay attention to the deeper throat dimension at doors.

It sounds like a continuous perimeter foundation (stem) wall might be a good idea.

here is the foundation plan showing the hold downs and shear walls.

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Would you have any ideas on added cost for continuous perimeter foundation?

It appears that the stem wall is continuous since the same detail (1/S2) seems to apply everywhere.

Here are the details for this sheet. Engineer has a note that says it should be cast in place anywhere there is a hold down and cmu elsewhere. But it looks like it would be about the same to just cast the whole thing since there are so many hold downs. (next to every window and door)

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I am not trying to question the engineer I just like to have some idea as to how it should be done.

Also, any thoughts on if it matters that the north direction on the plan doesn't match how the house will be. The north on the plan will actually be east.

Thanks so much.

If the north arrow is not critical to the plan (ie it's not a surveyor's drawing) then the arrow should be labeled "called north" instead of "north" or it should be rotated a bit on the drawing.

any other opinions?