Hammer & Fail (Part 1, Rival Builders) was released on September 10th, 2010. It is the second time an Eddisode was released in parts. It was also based on a feud between the three main characters and their neighboring counterparts.
Edd and Tom are eating breakfast, when Matt comes in with a tie rack, believing it to be a valuable antique. Edd and Tom, deeming the tie rack junk, tell Matt to store the tie rack in his room along with the rest of Matt's junk. Matt's room, however, is full, and Matt gets flooded by all the junk he collected the second he opens the door. Edd and Tom decide that they should build an extra floor in the house, with Edd considering hiring professional builders to build the extension, but Tom and Matt already put on their builders' uniforms.
During construction, Edd's new neighbors Eduardo, Jon, and Mark, taunt Edd for adding another floor to his house, saying that the extension to their house, which they supposedly finish last week, inspired Edd to build his own. When Tom asks what's with them, Edd has a flashback of when he first saw Eduardo, revealing an order mix-up in which Edd got Diet Coke and Eduardo got regular Coke, much to their chagrin.
Meanwhile, Matt was sent to the hardware store to buy nails, but he ends up buying everything else. Matt comes back, and the trio begin construction. Since Matt didn't buy nails like he was supposed to, the second floor ends up being a disaster. Edd and Matt seem satisfied with the result, but Tom is repulsed. The neighbors insult the trio's shoddily built roof.
Edd decides to order a new roof, which has arrived instantly. Matt finally has a place to store all of his stuff, but during nighttime, he ends up being attacked by a mysterious force, keeping Tom awake.
- Hammer & Fail marks the first time in which an Eddsworld episode has been split into two parts (the others being Space Face and The End). The Zombeh Attack series doesn't count since it was a series of sequels to the previous episode.
- This is also the first episode to be co-written by someone outside the Eddsworld group: Tom Bown.
- This is the first and only episode in which the street that Edd and the guys live on is ever mentioned. Later, the address and house number is referenced in Fun Dead and the fan comic AmeriCAN'T.
- This episode marks the first appearance of the Massive Tool Center, which would later reappear in The Snogre.
- This is the first appearance of Eduardo, Mark, and Jon.
- Tom breaks the fourth wall when he say what their neighbors are doing and he High-Fives himself by getting off his arm off-screen.
- This is Matt's grandma's second appearance (this time at a picture) since the Xmas Day short. It was most likely put there because Matt didn't want to forget his Grandma again.
- The Eddsworld Cereal box reappears from Ruined and Spares, along with a red car from WTFuture in parking lot of the Massive Tool Center.
- This is the third episode to feature Tom's bedroom, the other two being WTFuture and Ruined.
- During the opening titles, Edd sings (on every tone), "This-is-the-o-pe-ning-tune."
- During the breakfast scene, the magnets on the fridge read "Buy more Cola".
- Amongst the junk in Matt's room is a diary, an inflatable banana, models of Big Ben, a traffic cone, some burgers, a broken vase, a giant LEGO brick, a toy elephant, a skull, a Mr. Potato Head toy, and a Tomee Bear.
- The cassette that falls near Edd's feet says "Matt on Matt Anthems." This is possibly a reference to Matt's home video, "Matt on Matt Action", from MovieMakers.
- Despite Tom's hair Steve being unable to be pushed down when wearing a helmet in Moving Targets, it is able to here.
- Before and during construction, Edd runs off screen to stop his friend from using the tools improperly, followed by a crash and debris falling, before the next scene shifts.
- Above the sign for the massive tool center is says "Mat is a" implying that he is a massive tool center.
- On the side of the Massive Tool Center there is a WANTED poster of Future Edd.
- Edd's to-do list consists of needing to "draw blueprints, start layering bricks, checking the level of bricks, trying to fix the bricks, crying about the bricks, reading a magazine, sneezing, writing a five-page essay, eating a biscuit, being disappointed with Matt, having an obligatory building montage, installing Windows, running Windows, letting out a long yawn, and kill N.C.".
- Paul is seen as a picture inside the house when Tom drills a hole in the wall.
- Matt's underwear has "I <3 m@" (which stands for "I heart Matt") written on it.
- The Yellow Pages book Edd uses to call the Insta-Roof service is called 'Mellow Pages'.
- Matt's bed pillow has nails in it, which implies that he did indeed buy nails at some point while shopping at the Massive Tool Center.
- Tom has a checkerboard tie and an asdf poster in his bedroom.
- At the Massive Tool Center, it there's a picture of a screw that sayings "Screw Everything!"
- During the building montage there are slightly realistic (and creepy) pictures of Edd and Tom the appear on screen but not one of Matt. In Hammer & Fail 2 however, a picture of Matt in the same style does appear when Tom asks "Are we ready" and Edd and Matt yell "YEAH!" It is thought that Matt's picture was meant to appear with Edd and Tom's but was later cut and reused in Part 2.
- The title is a pun on the term "Hammer and Nail".
- When Matt is walking to his room to store his "antique", he mumbles something about being the ruler of everything, a reference to WTFuture. This confirms WTFuture's ending is canon.
- There is a sniper rifle with two bullets out of it on the roof of the Massive Tool Center which could have been from the comic "Money" where Edd "takes out" some money.
- When Tom says, "Well, it looks like we have everything we need," it is a reference to MovieMakers.
- A red car with a flag is seen at the Massive Tool Center a reference to the car scene in Random bits and WTFuture.
- At one point during the Montage, Tom makes a reference to BRODYQUEST.
- The sound effect that plays when Edd shows tom his blueprints is the same sound effect that is made when Shoe "Talks" in MovieMakers.
- Main article: Gallery:Hammer & Fail (Part 1, Rival Builders)