I am in the process of finishing my basement and am having an issue with the insulation.
I currently have plastic/foil vapor barrier on the foundation wall and my walls are framed out approx 2-3" away from the wall. The contractor who installed this vapor barrier (did it with a water mitigation system) stated that this was all I needed and I would not need additional insulation.
Of course I am skeptical. I think I need more insulation. The problem is I don't know how to go about it. I have gotten several conflicting comments.
I have been told to use foam board (very difficult with wall in place and very irregular walls) fiberglass batt w/o facing between studs, Faced fiberglass between studs and spray foam. I would love to do spray foam but it is expensive. My concern is obviously condensation issues. Any help would be appreciated

Why did the water proofing company who based on this post installed the inside system which is not water proofing at all do this? Whew, LWP is going to have a field day.
Inside systems are not water proofing. Its a water control system. Water is still allowed to enter into the home and then its pumped back out. True water proofing is a system installed on the outside of the foundation thus not allowing water to enter at all. Thus water proofing.

insulation requirements in basements are based on several factors. Location, debth of foundation, goverment requirements based on again location.

My concern here is that he covered the walls with a fiberglass batt that only is a few inches thick, Hopefully he used a vapor barrier that has no openings. If any openings are present such as gaps on seams, or around pipes or wires, moisture is going to collect behind the openings and mold is going to develop.
My suggestion is to remove what was installed to allow the wall to breath the reason being If any water is entering into the wall cavity because of incorrect water control the dampness will weep out of the walls and enter behind the insulation installed and cause mold to develop. Frame the walls and install insulation without vapor barrier, Then install a plastic vapor barrier over all the wall including the face of the studs. Sheetrock and finish. Be sure to kick the rock up off the floor as dampness will still be there and moisture will wick up out of the cement into the wall material. If you can get it use the denssheild sheetrock. Its fiberglass faced and not paper. This will help prevent mold from developing.

Ok, maybe I need to re-explain the situation. I had a water mitigation system put in. This is to contain water entering my basement. It would have been impossibly expensive to dig up outside and treat walls from there.
What I have is a plastic/foil vapor barrier (no insulation) running from sill plate to down below slab to redirect any future water into drain tiles. This is a continuous unbroken vapor barrier.
My concern is the stud walls I have already built that are approx 2-3" away from the wall and vapor barrier need to be insulated. Do I use unfaced because there is already a vapor barrier on the wall or do I use faced insulation.

Ok, The plastic was used to control any additional dampness that is seeping through the walls.
I would use a vapor barrier on the insulation then (warm side). The fact your insulating the walls because your keeping the warmth within the living area the area behind the insulation will be cold. Thus any dampness that collects from the warm side would not move to the cooler side of the wall and condense into the insulation as moisture.
I would before you spend a lot of money in the re-finish phase. Get a radon test done in basement. If radon is high the fix may be sealing up the new space on the water control system installed. That may change your budget somewhat. But radon is 2nd leading cause of lung cancer and should not be taken lightly.

Did you think it was "impossibly expensive" to dig outside and fix it right because you got prices from people who do that all the time, or did you take the word of the people who sold you the water (and disposable income) diverting system, which probably cost more than digging outside? As it is, you are probably doomed to be forever fighting mold, and possibly the entrance of radon gas and/or insects and vermin, because no one has stopped water from entering your house.

It was impossibly expensive because well over half the perimeter was inaccessible due to decks, patios, driveways or garage.The labor involved and the replacement of these structures would have been more than I would ever be able to afford.

One thing I did do was install a air exchange system that will keep the humidity down and vent the air and help any radon issues.

I did have a radon test soon after I moved in and the levels were well within limits

The are some very obvious advantages to a good interior drainage sytems. They do a superior job of reducing the moisture and pressure under the floor slab. They also do a bettet job of reducing the pressure/leakage at the common joint between the floor slab and foundation wall. - This all has to do with the fact that soil will absorb water no matter what you put on the exterior of a wall. If you get rid of most of the water, the problem is reduced dramatically and ther may no need for localized exterior diggibg, plugging, patching and covering. Water will run under the footings.

The best of two worlds is to initially install both interior and exterior drain tile, which is not costly for new construction.

For existing situations, you have to look at the site, soil conditions and what is best to solve the problem. Some jobs cannot be excavated from the exterior and may not work since the access is limited by other features/structures. Avoid the myopic pratice of chasing individual leaks, since once you plug one, the water can go elsewhere.

Thats good that you had a radon test done when you purchased the house. But you now have changed the way the air-flow in the house conducts itself. Digging trenches and placing air vent system can change the way the radon enters the home. Although most of the time there is little change to the radon entering. There still is a risk of higher levels. I suggest that you contact a local licenced radon measurement company and have the house re-tested. I do not want to tell you how many times as a radon measurement professional I have questioned my results on a test during a house sale. These tests are easy to tamper with and happens more times then not during house sales.
But anyway you sound like your on the right track.

Ok, so I got a DIY spray foam kit (Dow Froth Pak 600)and applied it to the plastic/foil sheeting that was on the walls. I was down there working the other day and noticed some condensation on the plastic sheeting on the wall and it was cool to the touch. Decided right then to get the spray foam. My thought was that even if I had put in standard between the studs fiberglass, if any warm moist air passed through it would condense on the cool plastic possibly causing mold. Applying the foam eliminated this cold surface and would not allow the moisture to condense. Now, I am deciding whether I have applied enough foam or need to spend more **** to make sure there is enough. I have definitely noticed that it has gotten warmer down there. So, I may be spraying more tomorrow or just saying screw it and putting up the drywall.