Drywall – do to transition between concrete and drywall

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I am drywalling my unheated, partially-below grade exterior garage. A four-foot tall concrete wall runs along the parts of the garage that are below-grade.

Above the concrete walls are 2×6 wood framed walls. The wood is anchored to the concrete and separated with a sill gasket. There is a 1/2 inch ledge so the drywall will be flush with the concrete.

What can I do to transition between the drywall and the cement? I don't want a gap, and I suspect the drywall shouldn't be in direct contact with the concrete.

Before and after: Left: concrete and wood framing, right: concrete and drywall

Best Answer

In my last house a daylight basement the original sheetrock was glued to the cement walls with liquid nails that worked very well. I did pull it all out and add furring for electrical spaces. (I don't like exposed conduit and surface boxes in a room that became my man land). If you are worried about cracking at the sill add a accent trim over the gap.