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Terraforming is a way of transforming land to make it more hospitable for construction of Buildings.
Terraform land around your settlement to enable construction of larger buildings.
One may also terraform coastal waters to make them deeper and more likely to attract fish
The first step in terraforming a plot is to gather all the resources. These materials are not wasted.

Pave Roads to speed up the movement of your villagers and thus improve the economy of your settlement.

Terraforming is labor intensive. It is done by builders and general laborers, and you can put many builders to work (beyond the # of builders said to be needed.) The more builders, the faster terraforming goes.

Flatten Area

Flatten Sloped Area

Raise Area

Flatten Raised Area