An exterior insulation and finish system (EIFS) is provided for use with associated insulation and substrate layers of a building. The system includes primary and secondary water resistant barriers on first and second surfaces of the associated insulation layer. The secondary water resistant barrier includes a single adhesive and sealing layer defining at least one channel and adhesively securing the second surface of the associated insulation layer to the associated substrate layer. The system is usable with a plurality of associated insulation layers disposed in abutment, the single adhesive and sealing layer defining at least one channel extending from the first insulation panel to the second insulation panel and being adapted to conduct fluid therethrough. Further, a hand tool for working the adhesive and sealing layer is provided. The hand tool includes a handle connected with a flat inflexible rectangular plate, at least one of the longer edges thereof being upwardly curved and including a plurality of spaced apart teeth.