A construction block system that includes a block with slanted edges that coact with contiguous blacks to define spaces or grooves for receiving cementitious substances. Cooperatively aligned channels in the upper and lower edges coact with longitudinally extending walls perpendicularly mounted to a base assembly. An adjustable mechanism provides for leveling of the base assembly to ensure proper installation of the lowermost row of blocks. Subsequently rows are aligned and leveled with a leveling tool assembly that is also partially received within the cooperative channels.