Find the difference in height between the top of the patio and where the grade changes. Choose the reference point for the top of the proposed patio. Place the board lumber from the reference point to the proposed end point of the patio.
Place the level on top of the board. Measure from the top of the board to the ground. The result is the difference in height.
Plan retaining walls as needed. Calculate retaining wall height by adding the difference in height between the top of the patio and the grade change to the depth of the footing or base below grade.
Remove soft soil and organic matter from the site with the skid steer loader, or by hand. Excavate a trench for the walls 5 to 7 inches below the bottom of the footing or the base of the wall. Fill with gravel and compact.
Apply waterproofing compound to the house foundation wall where it contacts the patio, following manufacturer's instructions. Install perforated pipe as necessary to the bottom of the fill for the patio.
Construct retaining walls, according to specifications for the height of the wall and the construction material. Slope the walls at 1 percent. Install perforated pipe for drainage at the foot of the wall. Backfill wall with gravel to a few inches below the level of proposed patio.
Prepare site for the patio pavement. Fill patio area with gravel to desired levels, allowing for 1 percent drainage from the patio and away from the house. Compact in 6 inch lifts, or layers, and leave room for the height of the paving material.
Install formwork and reinforcement as required for concrete, or level the sand base for pavers. Place paving flush to the inside edge of the top of the retaining wall. Sweep sand between the paver joints or finish the concrete as desired.