diff --git a/ui/terminal/format.go b/ui/terminal/format.go
index 241a1dd..01f8b0d 100644
--- a/ui/terminal/format.go
+++ b/ui/terminal/format.go
@@ -23,26 +23,28 @@
 )
 
 type formatter struct {
-	format string
-	quiet  bool
-	start  time.Time
+	colorize bool
+	format   string
+	quiet    bool
+	start    time.Time
 }
 
 // newFormatter returns a formatter for formatting output to
 // the terminal in a format similar to Ninja.
 // format takes nearly all the same options as NINJA_STATUS.
 // %c is currently unsupported.
-func newFormatter(format string, quiet bool) formatter {
+func newFormatter(colorize bool, format string, quiet bool) formatter {
 	return formatter{
-		format: format,
-		quiet:  quiet,
-		start:  time.Now(),
+		colorize: colorize,
+		format:   format,
+		quiet:    quiet,
+		start:    time.Now(),
 	}
 }
 
 func (s formatter) message(level status.MsgLevel, message string) string {
 	if level >= status.ErrorLvl {
-		return fmt.Sprintf("FAILED: %s", message)
+		return fmt.Sprintf("%s %s", s.failedString(), message)
 	} else if level > status.StatusLvl {
 		return fmt.Sprintf("%s%s", level.Prefix(), message)
 	} else if level == status.StatusLvl {
@@ -127,9 +129,9 @@
 	if result.Error != nil {
 		targets := strings.Join(result.Outputs, " ")
 		if s.quiet || result.Command == "" {
-			ret = fmt.Sprintf("FAILED: %s\n%s", targets, result.Output)
+			ret = fmt.Sprintf("%s %s\n%s", s.failedString(), targets, result.Output)
 		} else {
-			ret = fmt.Sprintf("FAILED: %s\n%s\n%s", targets, result.Command, result.Output)
+			ret = fmt.Sprintf("%s %s\n%s\n%s", s.failedString(), targets, result.Command, result.Output)
 		}
 	} else if result.Output != "" {
 		ret = result.Output
@@ -141,3 +143,11 @@
 
 	return ret
 }
+
+func (s formatter) failedString() string {
+	failed := "FAILED:"
+	if s.colorize {
+		failed = ansi.red() + ansi.bold() + failed + ansi.regular()
+	}
+	return failed
+}
diff --git a/ui/terminal/status.go b/ui/terminal/status.go
index 2ad174f..92f2994 100644
--- a/ui/terminal/status.go
+++ b/ui/terminal/status.go
@@ -27,9 +27,10 @@
 // statusFormat takes nearly all the same options as NINJA_STATUS.
 // %c is currently unsupported.
 func NewStatusOutput(w io.Writer, statusFormat string, forceSimpleOutput, quietBuild, forceKeepANSI bool) status.StatusOutput {
-	formatter := newFormatter(statusFormat, quietBuild)
+	canUseSmartFormatting := !forceSimpleOutput && isSmartTerminal(w)
+	formatter := newFormatter(canUseSmartFormatting, statusFormat, quietBuild)
 
-	if !forceSimpleOutput && isSmartTerminal(w) {
+	if canUseSmartFormatting {
 		return NewSmartStatusOutput(w, formatter)
 	} else {
 		return NewSimpleStatusOutput(w, formatter, forceKeepANSI)
diff --git a/ui/terminal/status_test.go b/ui/terminal/status_test.go
index 8dd1809..991eca0 100644
--- a/ui/terminal/status_test.go
+++ b/ui/terminal/status_test.go
@@ -58,7 +58,7 @@
 		{
 			name:   "action with error",
 			calls:  actionsWithError,
-			smart:  "\r\x1b[1m[  0% 0/3] action1\x1b[0m\x1b[K\r\x1b[1m[ 33% 1/3] action1\x1b[0m\x1b[K\r\x1b[1m[ 33% 1/3] action2\x1b[0m\x1b[K\r\x1b[1m[ 66% 2/3] action2\x1b[0m\x1b[K\nFAILED: f1 f2\ntouch f1 f2\nerror1\nerror2\n\r\x1b[1m[ 66% 2/3] action3\x1b[0m\x1b[K\r\x1b[1m[100% 3/3] action3\x1b[0m\x1b[K\n",
+			smart:  "\r\x1b[1m[  0% 0/3] action1\x1b[0m\x1b[K\r\x1b[1m[ 33% 1/3] action1\x1b[0m\x1b[K\r\x1b[1m[ 33% 1/3] action2\x1b[0m\x1b[K\r\x1b[1m[ 66% 2/3] action2\x1b[0m\x1b[K\n\x1b[31m\x1b[1mFAILED:\x1b[0m f1 f2\ntouch f1 f2\nerror1\nerror2\n\r\x1b[1m[ 66% 2/3] action3\x1b[0m\x1b[K\r\x1b[1m[100% 3/3] action3\x1b[0m\x1b[K\n",
 			simple: "[ 33% 1/3] action1\n[ 66% 2/3] action2\nFAILED: f1 f2\ntouch f1 f2\nerror1\nerror2\n[100% 3/3] action3\n",
 		},
 		{
@@ -70,7 +70,7 @@
 		{
 			name:   "messages",
 			calls:  actionsWithMessages,
-			smart:  "\r\x1b[1m[  0% 0/2] action1\x1b[0m\x1b[K\r\x1b[1m[ 50% 1/2] action1\x1b[0m\x1b[K\r\x1b[1mstatus\x1b[0m\x1b[K\r\x1b[Kprint\nFAILED: error\n\r\x1b[1m[ 50% 1/2] action2\x1b[0m\x1b[K\r\x1b[1m[100% 2/2] action2\x1b[0m\x1b[K\n",
+			smart:  "\r\x1b[1m[  0% 0/2] action1\x1b[0m\x1b[K\r\x1b[1m[ 50% 1/2] action1\x1b[0m\x1b[K\r\x1b[1mstatus\x1b[0m\x1b[K\r\x1b[Kprint\n\x1b[31m\x1b[1mFAILED:\x1b[0m error\n\r\x1b[1m[ 50% 1/2] action2\x1b[0m\x1b[K\r\x1b[1m[100% 2/2] action2\x1b[0m\x1b[K\n",
 			simple: "[ 50% 1/2] action1\nstatus\nprint\nFAILED: error\n[100% 2/2] action2\n",
 		},
 		{
@@ -362,7 +362,7 @@
 
 	stat.Flush()
 
-	w := "\r\x1b[1m[  0% 0/2] action1\x1b[0m\x1b[K\r\x1b[1m[  0% 0/2] action2\x1b[0m\x1b[K\r\x1b[1m[ 50% 1/2] action1\x1b[0m\x1b[K\nFAILED: \nOutput1\n\r\x1b[1m[100% 2/2] action2\x1b[0m\x1b[K\nThere was 1 action that completed after the action that failed. See verbose.log.gz for its output.\n"
+	w := "\r\x1b[1m[  0% 0/2] action1\x1b[0m\x1b[K\r\x1b[1m[  0% 0/2] action2\x1b[0m\x1b[K\r\x1b[1m[ 50% 1/2] action1\x1b[0m\x1b[K\n\x1b[31m\x1b[1mFAILED:\x1b[0m \nOutput1\n\r\x1b[1m[100% 2/2] action2\x1b[0m\x1b[K\nThere was 1 action that completed after the action that failed. See verbose.log.gz for its output.\n"
 
 	if g := smart.String(); g != w {
 		t.Errorf("want:\n%q\ngot:\n%q", w, g)
@@ -407,7 +407,7 @@
 
 	stat.Flush()
 
-	w := "\r\x1b[1m[  0% 0/2] action1\x1b[0m\x1b[K\r\x1b[1m[  0% 0/2] action2\x1b[0m\x1b[K\r\x1b[1m[  0% 0/2] action3\x1b[0m\x1b[K\r\x1b[1m[ 50% 1/2] action1\x1b[0m\x1b[K\nFAILED: \nOutput1\n\r\x1b[1m[100% 2/2] action2\x1b[0m\x1b[K\r\x1b[1m[150% 3/2] action3\x1b[0m\x1b[K\nThere were 2 actions that completed after the action that failed. See verbose.log.gz for their output.\n"
+	w := "\r\x1b[1m[  0% 0/2] action1\x1b[0m\x1b[K\r\x1b[1m[  0% 0/2] action2\x1b[0m\x1b[K\r\x1b[1m[  0% 0/2] action3\x1b[0m\x1b[K\r\x1b[1m[ 50% 1/2] action1\x1b[0m\x1b[K\n\x1b[31m\x1b[1mFAILED:\x1b[0m \nOutput1\n\r\x1b[1m[100% 2/2] action2\x1b[0m\x1b[K\r\x1b[1m[150% 3/2] action3\x1b[0m\x1b[K\nThere were 2 actions that completed after the action that failed. See verbose.log.gz for their output.\n"
 
 	if g := smart.String(); g != w {
 		t.Errorf("want:\n%q\ngot:\n%q", w, g)
@@ -445,7 +445,7 @@
 
 	stat.Flush()
 
-	w := "\r\x1b[1m[  0% 0/2] action1\x1b[0m\x1b[K\r\x1b[1m[  0% 0/2] action2\x1b[0m\x1b[K\r\x1b[1m[ 50% 1/2] action1\x1b[0m\x1b[K\nFAILED: \nOutput1\n\r\x1b[1m[100% 2/2] action2\x1b[0m\x1b[K\nFAILED: \nOutput2\n"
+	w := "\r\x1b[1m[  0% 0/2] action1\x1b[0m\x1b[K\r\x1b[1m[  0% 0/2] action2\x1b[0m\x1b[K\r\x1b[1m[ 50% 1/2] action1\x1b[0m\x1b[K\n\x1b[31m\x1b[1mFAILED:\x1b[0m \nOutput1\n\r\x1b[1m[100% 2/2] action2\x1b[0m\x1b[K\n\x1b[31m\x1b[1mFAILED:\x1b[0m \nOutput2\n"
 
 	if g := smart.String(); g != w {
 		t.Errorf("want:\n%q\ngot:\n%q", w, g)