diff --git a/Lib.hs b/Lib.hs
--- a/Lib.hs
+++ b/Lib.hs
@@ -15,6 +15,8 @@
        , recordMissingDependency
        , purgeRecordedDependencies
        , getHashesAndDepsForTarget
+       , getInvocationDir
+       , setInvocationDir
        )
        where
 
@@ -30,8 +32,8 @@
 import qualified Prelude
 import           Prelude hiding (fail,readFile)
 import           System.Directory (getCurrentDirectory, makeAbsolute, doesFileExist, renameFile, removeFile, createDirectoryIfMissing, getDirectoryContents, removeDirectoryRecursive, withCurrentDirectory, doesDirectoryExist)
-import           System.Environment (getEnvironment,lookupEnv)
-import           System.Exit (ExitCode(ExitSuccess),exitFailure)
+import           System.Environment (getEnvironment,lookupEnv,setEnv)
+import           System.Exit (ExitCode(ExitSuccess))
 import           System.FilePath ((</>), takeBaseName, dropFileName, replaceBaseName, addExtension,splitSearchPath)
 import           System.IO (hPutStrLn,stderr,hPutStr,withFile,IOMode(ReadMode,WriteMode,AppendMode),hFileSize)
 import qualified System.Process as Proc (env, waitForProcess, createProcess, proc)
@@ -94,7 +96,6 @@
         if code /= ExitSuccess
           then do
             putStrLnErr $ "*** redo failed for target "++show target
-            exitFailure
           else do filesize <- getFileSize tempFilePath
                   when (filesize /= 0) $ renameFile tempFilePath target
         return code
@@ -138,6 +139,17 @@
 getDefaultDirs :: (MonadIO m) => m [FilePath]
 getDefaultDirs =
   maybe [] splitSearchPath <$> liftIO (lookupEnv "GDO_DEFAULTS")
+
+gdoInvocationDir :: String
+gdoInvocationDir = "GDO_INVOCATION_DIR"
+
+getInvocationDir :: (MonadIO m) => m (Maybe FilePath)
+getInvocationDir =
+  liftIO $ lookupEnv gdoInvocationDir
+
+setInvocationDir :: (MonadIO m) => m ()
+setInvocationDir =
+  liftIO (setEnv gdoInvocationDir =<< getCurrentDirectory)
 
 hashFile :: (MonadIO m, MonadFail m) => FilePath -> m Hash
 hashFile target = do
diff --git a/Main.hs b/Main.hs
--- a/Main.hs
+++ b/Main.hs
@@ -1,16 +1,18 @@
-import           Control.Exception
-import           Control.Monad
-import           Control.Monad.IO.Class
-import           Control.Monad.Trans.Except
-import           Data.List
-import           Data.Maybe
-import           Data.Monoid
-import           System.Console.GetOpt
-import           System.Directory
-import           System.Environment
-import           System.Exit
-import           System.FilePath
-import           System.IO.Error
+import Control.Exception
+import Control.Monad
+import Control.Monad.IO.Class
+import Control.Monad.Trans.Class
+import Control.Monad.Trans.Except
+import Control.Monad.Trans.Reader
+import Data.List
+import Data.Maybe
+import Data.Monoid
+import System.Console.GetOpt
+import System.Directory
+import System.Environment
+import System.Exit
+import System.FilePath
+import System.IO.Error
 
 import Lib
 
@@ -70,8 +72,13 @@
          
 main :: IO ()
 main = do
+  invocationDir <-
+    fromMaybeM
+    (setInvocationDir >> getCurrentDirectory)
+    getInvocationDir
   defaultDirs <- getDefaultDirs
-  either exitWith (const exitSuccess) =<< runExceptT
+  either exitWith (const exitSuccess) =<<
+    (flip runReaderT invocationDir . runExceptT)
     (do (mMode,deps) <- getCliOpts
         case optsToMode mMode of
          Just Changed -> do
@@ -85,9 +92,14 @@
         return ()
     )
 
+type Redo m = ExceptT ExitCode (ReaderT FilePath m)
+
 redo :: (MonadIO m) =>
-        [FilePath] -> FilePath -> ExceptT ExitCode m ()
+        [FilePath] -> FilePath -> Redo m ()
 redo mDefaultsDir target = do
+  invocationDir <- lift $ ask
+  targetRelativePath <- makeRelative invocationDir <$>
+    liftIO (makeAbsolute target)
   targetDoesExist <- liftIO $ doesFileExist target
   isUpToDate <- upToDate mDefaultsDir target
   unless (isUpToDate && targetDoesExist) $ do
@@ -99,21 +111,28 @@
                   ("Neither target nor do file found for "++show target)
                 throwE (ExitFailure 1))
           (\recipe ->
-            do liftIO $ putStrLnErr $ "redo "++show target
+            do liftIO $ putStrLnErr $ "redo "++show targetRelativePath
                redoIfCreated mDefaultsDir target (target++".do")
                redoIfChanged mDefaultsDir target recipe
                buildResult <- liftIO $ executeRecipe target recipe
                when (buildResult /= ExitSuccess)
                  (do liftIO $ purgeRecordedDependencies target
                      throwE buildResult)
-               liftIO $ putStrLnErr $ "redone "++show target)
+               liftIO $ putStrLnErr $ "redone "++show targetRelativePath)
       =<< getRecipeFile mDefaultsDir target
 
+fromMaybeM :: (Monad m) => m a -> m (Maybe a) -> m a
+fromMaybeM fallback action = do
+  mValue <- action
+  case mValue of
+    Just value -> return value
+    Nothing -> fallback
+
 redoIfCreated :: (MonadIO m) =>
                  [FilePath]     -- ^ directory path of defaults
               -> FilePath       -- ^ build target
               -> FilePath       -- ^ path of the dependency
-              -> ExceptT ExitCode m ()
+              -> Redo m ()
 redoIfCreated mDefaultsDir buildTarget dep = do
   depExists <- liftIO $ doesFileExist dep
   if depExists
@@ -124,7 +143,7 @@
                  [FilePath]     -- ^ directory of defaults
               -> FilePath       -- ^ build target
               -> FilePath       -- ^ path of the dependency
-              -> ExceptT ExitCode m ()
+              -> Redo m ()
 redoIfChanged mDefaultsDir buildTarget dep = do
   (`withTarget` redo mDefaultsDir) dep
   liftIO $ recordDependency buildTarget dep
diff --git a/gdo.cabal b/gdo.cabal
--- a/gdo.cabal
+++ b/gdo.cabal
@@ -2,7 +2,7 @@
 -- see http://haskell.org/cabal/users-guide/
 
 name:                gdo
-version:             0.1.4
+version:             0.1.5
 synopsis:            recursive atomic build system
 description:
   *gdo* is a build system similar to **GNU Make**. It builds files from