I was going to make some smarta** comment about your wooden lot. Sorry. In answer to your question, any time the bark or roots are damaged, it will hurt the tree. The question is, how much damage and can it be fixed? Some trees are better able to cope with this type of injury. Let us know where you're located and what type of tree it is and I'm sure someone here can help you. There is also a lot of unseen damage during construction on a wooded lot. Soil compaction is the worst, along with root damage from excavation, concrete washout, fuel and chemical spills, the list goes on and on. My hope is that one day, home builders will call the arborist before construction begins, not after the trees are damaged.