diff --git a/kaylee/loader.py b/kaylee/loader.py
index ea948db..1292f4a 100644
--- a/kaylee/loader.py
+++ b/kaylee/loader.py
@@ -151,7 +151,7 @@ def applications(self):
     def _update_classes(self, module):
         """Updates the _classes field by the classes found in
         the module."""
-        classes_from_module = self.get_classes_from_module(module)
+        classes_from_module = get_classes_from_module(module)
         for base_class in self._loadable_base_classes:
             # update _classes[base_class] with
             # { class_name : class } pairs, where `class` is a subclass of
@@ -192,10 +192,10 @@ def _load_controller(self, conf):
                     **conf['controller'].get('config', {}))
         return cobj
 
-    @staticmethod
-    def get_classes_from_module(module):
-        return [attr for attr in module.__dict__.values()
-                if inspect.isclass(attr)]
+
+def get_classes_from_module(module):
+    return [attr for attr in module.__dict__.values()
+            if inspect.isclass(attr)]
 
 def find_packages(path):
     for sub_dir in os.listdir(path):
diff --git a/kaylee/manager/commands/build.py b/kaylee/manager/commands/build.py
index ae2b9be..0ccf37a 100644
--- a/kaylee/manager/commands/build.py
+++ b/kaylee/manager/commands/build.py
@@ -1,11 +1,13 @@
 from __future__ import print_function
 import os
+import sys
 import imp
+import importlib
 import subprocess
 import shutil
 import kaylee
 from kaylee.manager import LocalCommand
-from kaylee.loader import find_packages
+from kaylee.loader import find_packages, get_classes_from_module
 from kaylee.util import ensure_dir
 
 
@@ -86,20 +88,13 @@ def build_projects(settings, opts):
         data_handler,
     ]
 
-    # os.walk for files with by-extension sorting
-    def _fwalk(path):
-        sort_key = lambda fname: fname.rsplit()[-1]
-        #pylint: disable-msg=W0612
-        #W0612: Unused variable 'dirs'
-        for root, dirs, files in os.walk(path):
-            for fname in sorted(files, key=sort_key):
-                yield os.path.join(root, fname)
+    # Make sure that the command is able to import the projects'
+    # Python packages.
+    sys.path.insert(0, settings.PROJECTS_DIR)
 
     for pkg_dir in find_packages(settings.PROJECTS_DIR):
-        client_dir = os.path.join(pkg_dir, 'client')
-        if not os.path.isdir(client_dir):
-            break
-
+        if not is_kaylee_project_directory(pkg_dir):
+            continue
         print('* Building {}...'.format(pkg_dir))
         dest_dir = os.path.join(opts.build_dir, pkg_dir)
         opts.dest_dir = dest_dir
@@ -108,11 +103,27 @@ def _fwalk(path):
             shutil.rmtree(dest_dir)
         # build project client by applying appropriate
         # file handlers
-        for fpath in _fwalk(client_dir):
+        client_dir = os.path.join(pkg_dir, 'client')
+        for fname in os.listdir(client_dir):
+            fpath = os.path.join(client_dir, fname)
+            if not os.path.isfile(fpath):
+                continue
             for handler in filetype_handlers:
                 if handler(fpath, opts) == True:
                     break
 
+def is_kaylee_project_directory(path):
+    # check if 'client' directory exists
+    client_dir = os.path.join(path, 'client')
+    if not os.path.isdir(client_dir):
+        return False
+    # check for kaylee.Project subclass
+    package_name = path.rsplit('/')[-1]
+    pymod = importlib.import_module(package_name)
+    for cls in get_classes_from_module(pymod):
+        if issubclass(cls, kaylee.project.Project):
+            return True
+    return False
 
 def coffee_handler(fpath, opts):
     if not fpath.endswith('.coffee'):
diff --git a/kaylee/manager/commands/start_env.py b/kaylee/manager/commands/start_env.py
index 17644db..3a0c844 100644
--- a/kaylee/manager/commands/start_env.py
+++ b/kaylee/manager/commands/start_env.py
@@ -1,6 +1,5 @@
 import os
 import stat
-import shutil
 from jinja2 import Template
 from kaylee.manager import AdminCommand
 from kaylee.util import random_string
@@ -19,7 +18,6 @@ def execute(opts):
         start_env(opts)
 
 
-
 def start_env(opts):
     ENV_TEMPLATE_DIR = 'templates/env_template'
     ENV_TEMPLATE_PATH = os.path.join(os.path.dirname(__file__),
@@ -30,14 +28,17 @@ def start_env(opts):
         ('settings.py', 'settings.py'),
     ]
 
-    dest_path = os.path.join(os.getcwd(), opts.name)
+    if opts.name == '.':
+        dest_path = os.getcwd()
+    else:
+        dest_path = os.path.join(os.getcwd(), opts.name)
+        os.mkdir(dest_path)
 
     render_args = {
         'SECRET_KEY' : random_string(32),
         'PROJECTS_DIR' : dest_path,
     }
 
-    shutil.copytree(ENV_TEMPLATE_PATH, dest_path)
     for fname, out_fname in TEMPLATE_FILES:
         template_path = os.path.join(ENV_TEMPLATE_PATH, fname)
         with open(template_path) as f:
@@ -52,5 +53,6 @@ def start_env(opts):
     st = os.stat(klmanage_path)
     os.chmod(klmanage_path, st.st_mode | stat.S_IEXEC)
 
-    print('Kaylee environment "{}" has been successfully created.'
-          .format(opts.name))
+    _dirname = 'current directory' if opts.name == '.' else opts.name
+    print('Kaylee environment has been successfully created in {}'
+          .format(_dirname))
diff --git a/kaylee/testsuite/commands_manager_tests.py b/kaylee/testsuite/commands_manager_tests.py
index 0a09de8..972cb2a 100644
--- a/kaylee/testsuite/commands_manager_tests.py
+++ b/kaylee/testsuite/commands_manager_tests.py
@@ -1,5 +1,6 @@
 # -*- coding: utf-8 -*-
 import os
+import sys
 import stat
 import tempfile
 import shutil
@@ -72,7 +73,6 @@ def test_start_env(self):
             'klenv/klmanage.py',
             'klenv/settings.py',
         ]
-
         for fpath in files_to_validate:
             full_path = _pjoin(tmpdir, fpath)
             self.assertGreater(os.path.getsize(full_path), 0)
@@ -85,6 +85,18 @@ def test_start_env(self):
         self.assertEqual(settings.PROJECTS_DIR,
                          _pjoin(tmpdir, 'klenv'))
 
+        # test 'startenv .' case
+        tmpdir = tmp_chdir()
+        with nostdout():
+            manager.parse(['startenv', '.'])
+        files_to_validate = [
+            'klmanage.py',
+            'settings.py',
+        ]
+        for fpath in files_to_validate:
+            full_path = _pjoin(tmpdir, fpath)
+            self.assertGreater(os.path.getsize(full_path), 0)
+
 
     def test_start_project(self):
         manager = LocalCommandsManager()
@@ -135,14 +147,23 @@ def test_build(self):
         env_path = _start_env()
         os.chdir(env_path)
 
-        # copy a ready test 'pi calc' project to the environment
-        shutil.copytree(_pjoin(RES_DIR, 'pi_calc'),
-                        _pjoin(env_path, 'pi_calc'))
+        # copy a test 'pi calc' project to the environment
+        res_path = _pjoin(RES_DIR, 'pi_calc')
+        dest_path = _pjoin(env_path, 'pi_calc')
+        shutil.copytree(res_path, dest_path)
+
+        # test plain is_kaylee_project_directory()
+        sys.path.insert(0, env_path)
+        from kaylee.manager.commands.build import is_kaylee_project_directory
+        self.assertTrue(is_kaylee_project_directory(res_path))
+        self.assertFalse(is_kaylee_project_directory('/etc'))
+        del sys.path[0]
 
         with nostdout():
             lmanager.parse(['build'])
 
         build_path = os.path.join(env_path, '_build')
+        self.assertTrue(os.path.exists(build_path), build_path)
         project_files_to_validate = [
             'js/pi_calc.js',
             'css/pi_calc.css',
@@ -154,7 +175,7 @@ def test_build(self):
         ]
         for fname in project_files_to_validate:
             fpath = os.path.join(build_path, 'pi_calc', fname)
-            self.assertTrue(os.path.exists(fpath))
+            self.assertTrue(os.path.exists(fpath), fpath)
 
         kaylee_files_to_validate = [
             'js/kaylee.js',
@@ -167,7 +188,6 @@ def test_build(self):
             fpath = os.path.join(build_path, 'kaylee', fname)
             self.assertTrue(os.path.exists(fpath))
 
-
     def test_run(self):
         env_path = _start_env()
         os.chdir(env_path)
diff --git a/kaylee/util.py b/kaylee/util.py
index c2dfd66..73193d8 100644
--- a/kaylee/util.py
+++ b/kaylee/util.py
@@ -182,9 +182,7 @@ def write(self, _):
         sys.stdout = Devnull()
     if stderr:
         sys.stderr = Devnull()
-
     yield
-
     sys.stdout = savestdout
     sys.stderr = savestderr