If the stucco exterior is in good condition, scrape away loose debris from any small cracks. If there are cracks larger than 1 inch in diameter, fill them with mortar before proceeding. The only time you might have to remove the old stucco is if large sections are falling from the walls. If this occurs, surface patching is unlikely to stop the deterioration, which may result in stucco falling from beneath the new siding.
Finding the studs that run beneath the stucco can be difficult because stud finders won't pick up the location of the studs through the stucco, which is a concrete product. The best way to locate the wall studs is from inside of the home. Measure the distance of the studs from the edge of a door or window, and then transfer those measurements to the outside of the house. Test by drilling a small pilot hole over the stud location. Snap chalk lines over the studs for reference.
If you’re installing cedar lap siding, you will install vertical furring strips over every wall stud. Furring strips are typically 1 by 3 inches and 8 feet long. Use concrete screws and a hammer drill to attach the strips over the chalk lines. If you’re installing cedar shingle siding, you’ll have to run the furring strips horizontally, because the shingles attach individually to the strips. When installing furring strips for cedar shingles, space the strips as far apart as the length of the shingle reveal. The reveal is the portion of the shingle that will show after installation. Standard cedar shingle reveal is 10 to 12 inches, although there are custom sizes. Use stainless steel nails to attach the cedar to the furring strips.
Seal unstained and unpainted cedar siding to protect it from premature weathering. If you choose to paint cedar siding, the standard practice is to paint all surfaces because cedar absorbs water quickly, and if the interior of the siding become wet, it can cause the paint to loosen and fall off. This means painting siding before installation, and then painting any raw edges you cut during installation. To prevent uneven surface weathering for unpainted cedar, store the siding in a weatherproof enclosure until installation.