diff --git a/server/src/server.ts b/server/src/server.ts
index 8f1a09625..708ec3270 100644
--- a/server/src/server.ts
+++ b/server/src/server.ts
@@ -126,33 +126,33 @@ let openedFile = (fileUri: string, fileContent: string) => {
 
   stupidFileContentCache.set(filePath, fileContent);
 
-  let projectRootPath = utils.findProjectRootOfFile(filePath);
-  if (projectRootPath != null) {
-    if (!projectsFiles.has(projectRootPath)) {
-      projectsFiles.set(projectRootPath, {
+  let buildRootPath = utils.findBuildRootOfFile(filePath);
+  if (buildRootPath != null) {
+    if (!projectsFiles.has(buildRootPath)) {
+      projectsFiles.set(buildRootPath, {
         openFiles: new Set(),
         filesWithDiagnostics: new Set(),
         bsbWatcherByEditor: null,
       });
       compilerLogsWatcher.add(
-        path.join(projectRootPath, c.compilerLogPartialPath)
+        path.join(buildRootPath, c.compilerLogPartialPath)
       );
     }
-    let root = projectsFiles.get(projectRootPath)!;
+    let root = projectsFiles.get(buildRootPath)!;
     root.openFiles.add(filePath);
     let firstOpenFileOfProject = root.openFiles.size === 1;
     // check if .bsb.lock is still there. If not, start a bsb -w ourselves
     // because otherwise the diagnostics info we'll display might be stale
-    let bsbLockPath = path.join(projectRootPath, c.bsbLock);
+    let bsbLockPath = path.join(buildRootPath, c.bsbLock);
     if (firstOpenFileOfProject && !fs.existsSync(bsbLockPath)) {
-      let bsbPath = path.join(projectRootPath, c.bsbPartialPath);
+      let bsbPath = path.join(buildRootPath, c.bsbPartialPath);
       // TODO: sometime stale .bsb.lock dangling. bsb -w knows .bsb.lock is
       // stale. Use that logic
       // TODO: close watcher when lang-server shuts down
       if (fs.existsSync(bsbPath)) {
         let payload: clientSentBuildAction = {
           title: c.startBuildAction,
-          projectRootPath: projectRootPath,
+          projectRootPath: buildRootPath,
         };
         let params = {
           type: p.MessageType.Info,
@@ -183,17 +183,17 @@ let closedFile = (fileUri: string) => {
 
   stupidFileContentCache.delete(filePath);
 
-  let projectRootPath = utils.findProjectRootOfFile(filePath);
-  if (projectRootPath != null) {
-    let root = projectsFiles.get(projectRootPath);
+  let buildRootPath = utils.findBuildRootOfFile(filePath);
+  if (buildRootPath != null) {
+    let root = projectsFiles.get(buildRootPath);
     if (root != null) {
       root.openFiles.delete(filePath);
       // clear diagnostics too if no open files open in said project
       if (root.openFiles.size === 0) {
         compilerLogsWatcher.unwatch(
-          path.join(projectRootPath, c.compilerLogPartialPath)
+          path.join(buildRootPath, c.compilerLogPartialPath)
         );
-        deleteProjectDiagnostics(projectRootPath);
+        deleteProjectDiagnostics(buildRootPath);
         if (root.bsbWatcherByEditor !== null) {
           root.bsbWatcherByEditor.kill();
           root.bsbWatcherByEditor = null;
@@ -419,7 +419,7 @@ process.on("message", (msg: m.Message) => {
         if (projectRootPath == null) {
           let params: p.ShowMessageParams = {
             type: p.MessageType.Error,
-            message: `Cannot find a nearby ${c.bsconfigPartialPath}. It's needed for determining the project's root.`,
+            message: `Cannot find a nearby ${c.bscPartialPath}. It's needed for determining the project's root.`,
           };
           let response: m.NotificationMessage = {
             jsonrpc: c.jsonrpcVersion,
diff --git a/server/src/utils.ts b/server/src/utils.ts
index e411abfe4..7097a001d 100644
--- a/server/src/utils.ts
+++ b/server/src/utils.ts
@@ -22,7 +22,7 @@ export let findProjectRootOfFile = (
 	source: p.DocumentUri
 ): null | p.DocumentUri => {
 	let dir = path.dirname(source);
-	if (fs.existsSync(path.join(dir, c.bsconfigPartialPath))) {
+	if (fs.existsSync(path.join(dir, c.bscPartialPath))) {
 		return dir;
 	} else {
 		if (dir === source) {
@@ -34,6 +34,24 @@ export let findProjectRootOfFile = (
 	}
 };
 
+// the "build root" represents the nearest directory containing a "bsconfig.json" file.
+// "bsconfig.json" can be used to locate the nearest build artefacts
+export let findBuildRootOfFile = (
+	source: p.DocumentUri
+): null | p.DocumentUri => {
+	let dir = path.dirname(source);
+	if (fs.existsSync(path.join(dir, c.bsconfigPartialPath))) {
+		return dir;
+	} else {
+		if (dir === source) {
+			// reached top
+			return null;
+		} else {
+			return findBuildRootOfFile(dir);
+		}
+	}
+};
+
 type execResult =
 	| {
 		kind: "success";