I have the skill levels and I flattened the area, but I do not have the option to create a shack.
http://imgur.com/a/jx8iz
Just incase I have the windows for Construction Materials Preparation window and the Construction windows open respectively, but I also have the skill levels windows opened up as well along with a screenshot of the local area being leveled.
I right click the ground, and hit Construction Materials Preparation, then create, but the window that's popped up doesn't have the tiny shack.