diff --git a/container_test.go b/container_test.go
index 1d25c4d661..0da1b967f8 100644
--- a/container_test.go
+++ b/container_test.go
@@ -151,7 +151,7 @@ func Test_BuildImageWithContexts(t *testing.T) {
 		ContextArchive     func() (io.Reader, error)
 		ExpectedEchoOutput string
 		Dockerfile         string
-		ExpectedError      error
+		ExpectedError      string
 	}
 
 	testCases := []TestCase{
@@ -252,7 +252,7 @@ func Test_BuildImageWithContexts(t *testing.T) {
 			ExpectedEchoOutput: "hi this is from the say_hi.sh file!",
 		},
 		{
-			Name:               "test buildling from a context on the filesystem",
+			Name:               "test building from a context on the filesystem",
 			ContextPath:        "./testdata",
 			Dockerfile:         "echo.Dockerfile",
 			ExpectedEchoOutput: "this is from the echo test Dockerfile",
@@ -266,7 +266,7 @@ func Test_BuildImageWithContexts(t *testing.T) {
 			ContextArchive: func() (io.Reader, error) {
 				return nil, nil
 			},
-			ExpectedError: errors.New("you must specify either a build context or an image: failed to create container"),
+			ExpectedError: "create container: you must specify either a build context or an image",
 		},
 	}
 
@@ -292,16 +292,15 @@ func Test_BuildImageWithContexts(t *testing.T) {
 				ContainerRequest: req,
 				Started:          true,
 			})
-			switch {
-			case testCase.ExpectedError != nil && err != nil:
-				if testCase.ExpectedError.Error() != err.Error() {
-					t.Fatalf("unexpected error: %s, was expecting %s", err.Error(), testCase.ExpectedError.Error())
-				}
-			case err != nil:
-				t.Fatal(err)
-			default:
-				terminateContainerOnEnd(t, ctx, c)
+
+			defer terminateContainerOnEnd(t, ctx, c)
+
+			if testCase.ExpectedError != "" {
+				require.EqualError(t, err, testCase.ExpectedError)
+				return
 			}
+
+			require.NoError(t, err)
 		})
 	}
 }
diff --git a/docker.go b/docker.go
index e89b9f4649..c3dfcb8da2 100644
--- a/docker.go
+++ b/docker.go
@@ -887,14 +887,14 @@ func (p *DockerProvider) BuildImage(ctx context.Context, img ImageBuildInfo) (st
 			var err error
 			buildOptions, err = img.BuildOptions()
 			if err != nil {
-				return types.ImageBuildResponse{}, backoff.Permanent(err)
+				return types.ImageBuildResponse{}, backoff.Permanent(fmt.Errorf("build options: %w", err))
 			}
 			defer tryClose(buildOptions.Context) // release resources in any case
 
 			resp, err := p.client.ImageBuild(ctx, buildOptions.Context, buildOptions)
 			if err != nil {
 				if isPermanentClientError(err) {
-					return types.ImageBuildResponse{}, backoff.Permanent(err)
+					return types.ImageBuildResponse{}, backoff.Permanent(fmt.Errorf("build image: %w", err))
 				}
 				return types.ImageBuildResponse{}, err
 			}
@@ -908,30 +908,28 @@ func (p *DockerProvider) BuildImage(ctx context.Context, img ImageBuildInfo) (st
 		},
 	)
 	if err != nil {
-		return "", err
+		return "", err // Error is already wrapped.
 	}
 	defer resp.Body.Close()
 
+	output := io.Discard
 	if img.ShouldPrintBuildLog() {
-		termFd, isTerm := term.GetFdInfo(os.Stderr)
-		err = jsonmessage.DisplayJSONMessagesStream(resp.Body, os.Stderr, termFd, isTerm, nil)
-		if err != nil {
-			return "", err
-		}
+		output = os.Stderr
 	}
 
-	// need to read the response from Docker, I think otherwise the image
-	// might not finish building before continuing to execute here
-	_, err = io.Copy(io.Discard, resp.Body)
-	if err != nil {
-		return "", err
+	// Always process the output, even if it is not printed
+	// to ensure that errors during the build process are
+	// correctly handled.
+	termFd, isTerm := term.GetFdInfo(output)
+	if err = jsonmessage.DisplayJSONMessagesStream(resp.Body, output, termFd, isTerm, nil); err != nil {
+		return "", fmt.Errorf("build image: %w", err)
 	}
 
 	// the first tag is the one we want
 	return buildOptions.Tags[0], nil
 }
 
-// CreateContainer fulfills a request for a container without starting it
+// CreateContainer fulfils a request for a container without starting it
 func (p *DockerProvider) CreateContainer(ctx context.Context, req ContainerRequest) (Container, error) {
 	var err error
 
diff --git a/from_dockerfile_test.go b/from_dockerfile_test.go
index ab25ae6dee..fc1d4052ea 100644
--- a/from_dockerfile_test.go
+++ b/from_dockerfile_test.go
@@ -5,6 +5,7 @@ import (
 	"fmt"
 	"io"
 	"log"
+	"path/filepath"
 	"strings"
 	"testing"
 	"time"
@@ -88,6 +89,28 @@ func TestBuildImageFromDockerfile_NoRepo(t *testing.T) {
 	})
 }
 
+func TestBuildImageFromDockerfile_BuildError(t *testing.T) {
+	ctx := context.Background()
+	dockerClient, err := NewDockerClientWithOpts(ctx)
+	require.NoError(t, err)
+
+	defer dockerClient.Close()
+
+	req := ContainerRequest{
+		FromDockerfile: FromDockerfile{
+			Dockerfile: "error.Dockerfile",
+			Context:    filepath.Join(".", "testdata"),
+		},
+	}
+	_, err = GenericContainer(ctx, GenericContainerRequest{
+		ProviderType:     providerType,
+		ContainerRequest: req,
+		Started:          true,
+	})
+
+	require.EqualError(t, err, `create container: build image: The command '/bin/sh -c exit 1' returned a non-zero code: 1`)
+}
+
 func TestBuildImageFromDockerfile_NoTag(t *testing.T) {
 	provider, err := NewDockerProvider()
 	if err != nil {
diff --git a/generic.go b/generic.go
index 65fec35c88..f0cda13407 100644
--- a/generic.go
+++ b/generic.go
@@ -74,7 +74,7 @@ func GenericContainer(ctx context.Context, req GenericContainerRequest) (Contain
 	}
 	if err != nil {
 		// At this point `c` might not be nil. Give the caller an opportunity to call Destroy on the container.
-		return c, fmt.Errorf("%w: failed to create container", err)
+		return c, fmt.Errorf("create container: %w", err)
 	}
 
 	if req.Started && !c.IsRunning() {
diff --git a/testdata/error.Dockerfile b/testdata/error.Dockerfile
new file mode 100644
index 0000000000..1284e7285f
--- /dev/null
+++ b/testdata/error.Dockerfile
@@ -0,0 +1,4 @@
+FROM docker.io/alpine
+
+RUN exit 1
+