diff --git a/lib/contracts/compiler.js b/lib/contracts/compiler.js
index 4f9b1cc2..322e5f01 100644
--- a/lib/contracts/compiler.js
+++ b/lib/contracts/compiler.js
@@ -19,6 +19,7 @@ var Compiler = function(options) {
 };
 
 Compiler.prototype.compile_contracts = function(contractFiles, cb) {
+  var self = this;
 
   var available_compilers = {
     //".se": this.compile_serpent
@@ -45,13 +46,13 @@ Compiler.prototype.compile_contracts = function(contractFiles, cb) {
         return (file.filename.match(/\.[0-9a-z]+$/)[0] === extension);
       });
 
-      compiler.call(compiler, matchingFiles || [], function(compileResult) {
+      compiler.call(compiler, matchingFiles || [], function(err, compileResult) {
         Object.assign(compiledObject, compileResult);
-        callback();
+        callback(err, compileResult);
       });
     },
     function (err) {
-      cb(compiledObject);
+      cb(err, compiledObject);
     }
   );
 };
@@ -84,10 +85,9 @@ Compiler.prototype.compile_solidity = function(contractFiles, cb) {
     function compileContracts(callback) {
       self.logger.info("compiling contracts...");
       solcW.compile({sources: input}, 1, function(output) {
-        // TODO: check error is handled properly
-        //if (output.errors) {
-        //  throw new Error ("Solidity errors: " + output.errors);
-        //}
+        if (output.errors) {
+          return callback(new Error ("Solidity errors: " + output.errors).message);
+        }
         callback(null, output);
       });
     },
@@ -109,7 +109,7 @@ Compiler.prototype.compile_solidity = function(contractFiles, cb) {
       callback(null, compiled_object);
     }
   ], function(err, result) {
-    cb(result);
+    cb(err, result);
   });
 };
 
diff --git a/lib/contracts/contracts.js b/lib/contracts/contracts.js
index e4908d91..9b3916da 100644
--- a/lib/contracts/contracts.js
+++ b/lib/contracts/contracts.js
@@ -40,15 +40,10 @@ ContractsManager.prototype.build = function(done) {
   async.waterfall([
     function compileContracts(callback) {
       var compiler = new Compiler({plugins: self.plugins, logger: self.logger});
-      // TODO: check if try is still needed
-      //try {
-        compiler.compile_contracts(self.contractFiles, function(compiledObject) {
+        compiler.compile_contracts(self.contractFiles, function(err, compiledObject) {
           self.compiledContracts = compiledObject;
-          callback();
+          callback(err);
         });
-      //} catch(err) {
-      //  return callback(new Error(err.message));
-      //}
     },
     function prepareContractsFromConfig(callback) {
       var className, contract;
@@ -169,13 +164,11 @@ ContractsManager.prototype.build = function(done) {
       callback();
     }
   ], function(err, result) {
-    self.logger.trace("finished".underline);
     if (err) {
-      //self.logger.debug(err.stack);
-      done(err);
-    } else {
-      done(null, self);
+      self.logger.error("Error Compiling/Building contracts: " + err);
     }
+    self.logger.trace("finished".underline);
+    done(err, self);
   });
 };