diff --git a/package-lock.json b/package-lock.json
index 1e5b965..a8690b8 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
 	"name": "codebase-cli",
-	"version": "2.0.0-pre.75",
+	"version": "2.0.0-pre.76",
 	"lockfileVersion": 3,
 	"requires": true,
 	"packages": {
 		"": {
 			"name": "codebase-cli",
-			"version": "2.0.0-pre.75",
+			"version": "2.0.0-pre.76",
 			"license": "MIT",
 			"dependencies": {
 				"@earendil-works/pi-agent-core": "0.74.0",
diff --git a/package.json b/package.json
index 8bb990f..ac74083 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
 	"name": "codebase-cli",
-	"version": "2.0.0-pre.75",
+	"version": "2.0.0-pre.76",
 	"description": "Codebase CLI — a TypeScript coding agent on the pi-mono runtime. OAuth-aware, any LLM provider, single install.",
 	"keywords": [
 		"ai",
diff --git a/src/projects/cli.test.ts b/src/projects/cli.test.ts
index 5389fac..3606c8e 100644
--- a/src/projects/cli.test.ts
+++ b/src/projects/cli.test.ts
@@ -237,6 +237,24 @@ describe("runProjectSubcommand", () => {
 		expect(result.stdout.join("\n")).toContain("preview: https://codebase.design/preview/proj-1");
 	});
 
+	it("fails a terminal build and prints the server reason", async () => {
+		const result = await runProject(
+			["project", "build", "--wait", "Build", "a", "demo"],
+			fakeClient({
+				status: {
+					sessionId: "sess-1",
+					status: "failed",
+					projectId: "proj-1",
+					error: "active-project cap reached (1)",
+				},
+			}),
+		);
+
+		expect(result.code).toBe(1);
+		expect(result.stdout.join("\n")).toContain("build sess-1: failed");
+		expect(result.stdout.join("\n")).toContain("error:   active-project cap reached (1)");
+	});
+
 	it("streams deduplicated file and phase progress while waiting", async () => {
 		let calls = 0;
 		const statuses: BuildStatusResponse[] = [
diff --git a/src/projects/cli.ts b/src/projects/cli.ts
index bb076c8..2467c1b 100644
--- a/src/projects/cli.ts
+++ b/src/projects/cli.ts
@@ -330,7 +330,7 @@ async function buildCmd(
 		if (previewUrl) handoffStore?.update({ sessionId: started.sessionId, previewUrl });
 		return 0;
 	}
-	return status.status === "failed" ? 1 : 0;
+	return 1;
 }
 
 async function waitForBuild(
@@ -408,7 +408,7 @@ async function statusCmd(
 	const status = await client.getBuildStatus(resolved.sessionId);
 	handoffStore?.update({ sessionId: resolved.sessionId, status: status.status, model: status.model });
 	printBuildStatus(status, out);
-	return status.status === "failed" ? 1 : 0;
+	return status.status === "completed" || status.status === "building" ? 0 : 1;
 }
 
 async function previewCmd(
@@ -472,6 +472,7 @@ function resolveBuildSessionId(
 
 function printBuildStatus(status: BuildStatusResponse, out: (msg: string) => void): void {
 	out(`build ${status.sessionId}: ${status.status}`);
+	if (status.error) out(`  error:   ${status.error}`);
 	if (status.projectId) out(`  project: ${status.projectId}`);
 	if (status.model) out(`  model:   ${status.model}`);
 	const files = uniqueStrings(status.filesCreated);
diff --git a/src/projects/types.ts b/src/projects/types.ts
index bd7897e..2196abd 100644
--- a/src/projects/types.ts
+++ b/src/projects/types.ts
@@ -41,6 +41,7 @@ export interface BuildStartResponse {
 export interface BuildStatusResponse {
 	sessionId: string;
 	status: string;
+	error?: string;
 	projectId?: string;
 	filesCreated?: string[];
 	model?: string;