It can be done either way.
Installing vinyl siding around a pipe.
You can work around them by putting laps in the siding.
Begin by installing the first row of siding on both sides of the deck.
From the top of this row and stretch a string line across the deck.
It s a little more money and time to use some type of j blocks.
Position the siding behind the faucet and make sure the notched section fits around the pipe and the nailing slots are placed over the piece of plywood.
It protects the sheathing from rain snow and pests.
Using j blocks does look better in my and other peoples opinion.
Below the top of the foundation but the lower the vinyl siding is installed the better.
To provide a common reference point measure up 8 in.
Replacement vinyl siding around existing pipes post by shannon tue apr 26 2016 2 02 am so i will assume you have a water line conduit or some other pipe sticking out through the wall.