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+# Phase 2 — Builder Upgrade Design
+
+**Status:** Approved
+**Date:** 2026-02-13
+**Scope:** Drag & drop field reordering, side-by-side live preview, snapshot-based undo/redo
+
+---
+
+## Overview
+
+Phase 2 upgrades the FormBuilderModal with three features that transform it from a basic editor into a polished builder experience. All changes are scoped to `form-builder.ts` and `styles.css`, with no new modules needed.
+
+---
+
+## 1. Drag & Drop Field Reordering
+
+### Implementation
+
+Native HTML5 Drag & Drop on `.ff-builder-field` elements:
+
+- Each field gets `draggable="true"` and a drag handle (`⠿` gripper icon) in the header
+- `dragstart`: Stores source index in instance variable `dragSourceIndex`
+- `dragover`: Calculates drop position (above/below element center), shows CSS indicator
+- `dragleave`: Removes drop indicator
+- `drop`: Reorders `draft.fields` array, calls `this.render()`
+- Instance variable `dragSourceIndex: number | null` tracks the dragged field
+
+### Existing Up/Down buttons remain
+
+They serve as accessibility fallback for keyboard-only users.
+
+### CSS Classes
+
+- `.ff-drag-handle` — Gripper icon, `cursor: grab`, left of field number
+- `.ff-builder-field.ff-dragging` — `opacity: 0.4` during drag
+- `.ff-builder-field.ff-drop-above` — Blue top border indicator line
+- `.ff-builder-field.ff-drop-below` — Blue bottom border indicator line
+
+---
+
+## 2. Side-by-Side Live Preview
+
+### Layout
+
+The `render()` method creates a two-column grid layout:
+
+```
+┌─────────────────────────────────────────────┐
+│ Form Settings (h2)                          │
+├──────────────────────┬──────────────────────┤
+│  Editor (left)       │  Preview (right)     │
+│  - General settings  │  - Form title        │
+│  - Fields list       │  - Rendered fields   │
+│  - Add field button  │  - Submit button     │
+├──────────────────────┴──────────────────────┤
+│ Footer: Undo/Redo | Cancel | Save           │
+└─────────────────────────────────────────────┘
+```
+
+### Preview Panel
+
+- Calls existing `renderField()` from `field-renderers.ts` for each field
+- Fields are fully interactive (users can test how they feel)
+- Shows form title and a disabled pseudo-submit button
+- Automatically updates on every `render()` call (no separate mechanism)
+- Uses `this.app` for note-link and folder-picker autocomplete
+
+### CSS Changes
+
+- `.ff-builder-layout` — `display: grid; grid-template-columns: 1fr 1fr; gap: 24px`
+- `.ff-builder-preview` — `border-left`, `padding-left`, sticky "Preview" header
+- `.ff-builder-modal` — `max-width` increased from 700px to 1100px
+- Footer spans full width below the grid
+
+---
+
+## 3. Snapshot-Based Undo/Redo
+
+### State
+
+New instance variables on `FormBuilderModal`:
+
+```typescript
+private history: FormDefinition[] = [];
+private historyIndex: number = 0;
+```
+
+### Methods
+
+- `pushSnapshot()` — `structuredClone(this.draft)` pushed to history. Truncates forward history (everything after `historyIndex`). Max 30 entries.
+- `undo()` — Decrements `historyIndex`, restores draft from snapshot, calls `render()`
+- `redo()` — Increments `historyIndex`, restores draft from snapshot, calls `render()`
+
+### When snapshots are pushed
+
+Before mutations that trigger `render()`:
+- Add field
+- Delete field
+- Move field (drag & drop, up/down)
+- Change field type
+- Change form mode (create/update)
+
+NOT on every keystroke — only on `change` events (blur/enter) for text inputs.
+
+### Keyboard Shortcuts
+
+- `Ctrl+Z` / `Cmd+Z` → undo
+- `Ctrl+Shift+Z` / `Cmd+Shift+Z` → redo
+- Keydown listener on `contentEl`
+
+### Visual Indicators
+
+- Undo (`↩`) and Redo (`↪`) buttons in footer, left-aligned (before Cancel/Save)
+- Buttons are disabled when at start/end of history stack
+
+### Initialization
+
+Constructor pushes first snapshot of original form state.
+
+---
+
+## Files Changed
+
+| File | Change |
+|------|--------|
+| `src/ui/form-builder.ts` | Drag & drop, preview panel, undo/redo — major rewrite |
+| `styles.css` | DnD indicators, grid layout, preview panel, undo/redo buttons |
+
+## Out of Scope
+
+- Undo for individual text keystrokes (browser-native handles this)
+- External undo manager utility
+- Drag & drop between forms
+- Preview in a separate modal/window
+- Collapsible preview panel