Pour the basement waterproofing paint into a paint tray. Thoroughly wet the roller brush with the paint.
Apply the paint thickly to the block wall. Ensure that the paint penetrates into the crevasses of each block and creates a complete seal. Allow the paint to dry according to the package directions before continuing.
Apply construction adhesive to the back of the panel. The bead of adhesive should be in a continuous line around the outside edge of the panel with between eight and ten 5-inch dollops of adhesive evenly spaced around the middle of the panel.
Press the panel in place against the waterproofing paint. Press against the outside edges evenly to prevent the panel from peeling away from the wall. The adhesive around the edges should flow out from the edges of the panel.
Press the middle of the panel to ensure that the inside of the panel does not bow outward or sag in the middle. When you are confident that the panel is flat against the wall, install the next piece of paneling in the same manner that you installed the first.