Start your construction process in mid-spring when the ground thaws and softens. This moist, soft soil allows the easiest digging and construction. Choose a site on the slope where the terrace gets full sunshine all day for best growing. Pick a site with the gentlest slope for easiest construction.
Measure out your terrace garden and put stakes at the corners. Run twine from the top of each stake to the next to build a box. This marks the border of your terrace. Slide the twine to ground level on the highest two stakes and adjust the twine on the bottom two stakes to match. Use a level to measure the twine at all points. The twine now marks what will be the top of your retaining wall.
Dig a trench for your retaining wall. Make the trench 4 to 5 inches deep and wide enough for your cinder blocks. Dig the trench on only the bottom and sides of the terrace; the slope itself supplies the top side.
Lay 2 inches of masonry sand in the bottom of the trench. This provides a footer for the retaining wall and gives the blocks a place to sit.
Put the first course of cinder blocks down in the sand. Slide the blocks back and forth to settle them into the sand and use the level to balance them. Pound any high points with a rubber mallet and measure for level again. Repeat this process until you have a level first course.
Mix quick-set concrete into a bucket, per the directions. Use a trowel to spread a 1-inch-deep layer of concrete over the first course of blocks on the bottom side. Stack a second course of blocks onto the first. Level these blocks and adjust them as necessary. Allow the concrete to set for 12 hours.
Add a second course of bricks to the sides following the same steps. Add concrete blocks up the side walls only until the top of the wall reaches the twine line. These courses may extend only halfway up the sides and will not present a continuous surface.
Add a third course of blocks to the bottom wall if necessary until you reach the twine line. Allow at least 12 hours of concrete drying time between each course of blocks.
Mix soil for the terrace garden. Pour garden loam and organic compost into the garden in equal parts. Mix the soils together for a nutritious, quick-draining base. Add 5-10-10 or 10-10-10 fertilizer for best starting nutrition.