diff --git a/.gitignore b/.gitignore
index 27f46504f..46bbb308d 100644
--- a/.gitignore
+++ b/.gitignore
@@ -413,4 +413,5 @@ docs/vendor
 docs/.bundle
 
 # Database files
+database/postgres
 database/postgres-dev
diff --git a/database/postgres/README.md b/database/postgres/README.md
deleted file mode 100644
index 68abfb8f7..000000000
--- a/database/postgres/README.md
+++ /dev/null
@@ -1 +0,0 @@
-This is the default location where the postgres database files are stored.
\ No newline at end of file
diff --git a/install.sh b/install.sh
index d294c729d..8893875cf 100755
--- a/install.sh
+++ b/install.sh
@@ -733,6 +733,9 @@ handle_build() {
     set_deployment_mode "build"
     printf "\n"
 
+    # Initialize workspace which makes sure all required directories and files exist
+    initialize_workspace
+
     # Check for required build files
     if [ ! -f "docker-compose.build.yml" ] || [ ! -d "src" ]; then
         printf "${RED}Error: Required files for building from source are missing.${NC}\n"