Examine the bare concrete walls for evidence of moisture problems or leakage. Check the state of your walls after a hard rain or heavy snowmelt. Repair any small cracks with hydraulic cement, following the label instructions for application. Correcting leakage problems now will help save time and money down the road.
Remove any protruding rebar ties from the interior of your concrete walls. Use a hammer to strike the thick wires, breaking them off evenly with the surface of the concrete. Sweep the walls with a broom to remove dust, cobwebs and other surface debris.
Measure the cement walls to determine the amount of ties and drywall you require. Plan to use four furring strips and one piece of drywall every 4 feet. Measure and cut the furring strips to fit along the bottom and top edges of the concrete wall. Attach these horizontal strips to the concrete with a hammer drill and concrete screws. Leave about 1/2 inch of space between the floor slab and the bottom furring strips to allow for moisture seepage.
Measure and mark the lines for the vertical furring placement along the concrete wall. Place these every 16 inches to create a backing for your drywall. Attach these vertical furring strips to the concrete wall with the hammer drill and concrete screws.
Measure and cut the drywall to fit over the furring strips. Tack on the drywall with drywall screws, drilling the heads of the screws slightly deeper than the surface of the drywall. Attack the drywall to the furring strips by placing the screws every 18 inches along the lengths of the strips.
Spread drywall joint compound over the screw indentations. Fill any large gaps between the pieces of drywall with a wide putty knife. Press adhesive drywall tape over the joints, and spread a thin layer of joint compound over the strips to blend the surface edges. Sand the dry putty to create a smooth and even surface for painting, papering, paneling or texturing.