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Gift Wood for Driftwood becomes available after finishing the Pest Control
quest, but it won't appear until a few days afterwards, as the gypsies need time to set up their camp. Once that's done, make your way across the bridges to the island camp and speak to Richard, who will tell you Driftwood needs a carpenter in order to build up the rest of their settlement. Accept the quest and he'll give you a latter to deliver to Silverpines.
If you've already been to Silverpines, you can simply fast travel to the village there; otherwise you'll have to travel there on foot. The carpenter lives outside of the village, in a cabin surrounded by tree stumps, so head out the village and follow the path to his home, which is surrounded by Balverines. Dispose of them in your usual fashion, then head inside his cabin and give him the letter.
Completing the quest will earn you 10 Guild Seals. Additionally, a few days later, Driftwood will be fully built up, and you'll be able to retrieve the Gold Key hidden there. See the Gold Keys page
for more details. If you've completed all quests relating to Driftwood, you'll receive the Island Paradise achievement
about a day after, once Driftwood is fully restored.