A laser projection system scans an output laser light beam onto an object to detect features. A high-sensitivity optical feedback system receives and detects a feedback beam of the output beam light diffusely reflected from the object. The feedback light and projected output beam share the same beam path between beam-steering mirrors of the projector and the object. The laser projection system has light suppression components to control stray scattered light, including ambient light, from being detected. A computer of the laser projection system calculates fiducial points on the object from detected features to align the projection system with the object without using targets. This feature detection is used in a process to guide assembly and fabrication on or to the object, and to verify the accurate placement of parts and fabrication steps in place after they are assembled or processed. In one form, the detected feature is a light spot on the object produced by a second light source.