diff --git a/packages/angular/src/schematics/application/application.spec.ts b/packages/angular/src/schematics/application/application.spec.ts
index 5b304c718f..d622562df3 100644
--- a/packages/angular/src/schematics/application/application.spec.ts
+++ b/packages/angular/src/schematics/application/application.spec.ts
@@ -60,9 +60,7 @@ describe('app', () => {
       const tsconfigApp = JSON.parse(
         stripJsonComments(getFileContent(tree, 'apps/my-app/tsconfig.app.json'))
       );
-      expect(tsconfigApp.compilerOptions.outDir).toEqual(
-        '../../dist/out-tsc/apps/my-app'
-      );
+      expect(tsconfigApp.compilerOptions.outDir).toEqual('../../dist/out-tsc');
       expect(tsconfigApp.extends).toEqual('./tsconfig.json');
 
       const tslintJson = JSON.parse(
@@ -76,9 +74,6 @@ describe('app', () => {
           getFileContent(tree, 'apps/my-app-e2e/tsconfig.e2e.json')
         )
       );
-      // expect(tsconfigE2E.compilerOptions.outDir).toEqual(
-      //   '../../dist/out-tsc/apps/my-app-e2e'
-      // );
       expect(tsconfigE2E.extends).toEqual('./tsconfig.json');
     });
 
@@ -206,7 +201,7 @@ describe('app', () => {
         {
           path: 'apps/my-dir/my-app/tsconfig.app.json',
           lookupFn: json => json.compilerOptions.outDir,
-          expectedValue: '../../../dist/out-tsc/apps/my-dir/my-app'
+          expectedValue: '../../../dist/out-tsc'
         },
         {
           path: 'apps/my-dir/my-app-e2e/tsconfig.json',
@@ -335,7 +330,7 @@ describe('app', () => {
       );
       expect(tsconfigAppJson.exclude).toEqual(['src/test.ts', '**/*.spec.ts']);
       expect(tsconfigAppJson.compilerOptions.outDir).toEqual(
-        '../../dist/out-tsc/apps/my-app'
+        '../../dist/out-tsc'
       );
     });
   });
diff --git a/packages/angular/src/schematics/application/application.ts b/packages/angular/src/schematics/application/application.ts
index e379302904..8a3264c38e 100644
--- a/packages/angular/src/schematics/application/application.ts
+++ b/packages/angular/src/schematics/application/application.ts
@@ -229,9 +229,7 @@ function updateProject(options: NormalizedSchema): Rule {
           extends: `./tsconfig.json`,
           compilerOptions: {
             ...json.compilerOptions,
-            outDir: `${offsetFromRoot(options.appProjectRoot)}dist/out-tsc/${
-              options.appProjectRoot
-            }`
+            outDir: `${offsetFromRoot(options.appProjectRoot)}dist/out-tsc`
           },
           exclude:
             options.unitTestRunner === 'jest'
@@ -307,9 +305,7 @@ function updateE2eProject(options: NormalizedSchema): Rule {
           extends: `./tsconfig.json`,
           compilerOptions: {
             ...json.compilerOptions,
-            outDir: `${offsetFromRoot(options.e2eProjectRoot)}dist/out-tsc/${
-              options.e2eProjectRoot
-            }`
+            outDir: `${offsetFromRoot(options.e2eProjectRoot)}dist/out-tsc`
           }
         };
       })
@@ -345,6 +341,7 @@ export default function(schema: Schema): Rule {
         skipTests: options.skipTests,
         style: options.style,
         viewEncapsulation: options.viewEncapsulation,
+        enableIvy: options.enableIvy,
         routing: false,
         skipInstall: true,
         skipPackageJson: false
diff --git a/packages/angular/src/schematics/application/schema.d.ts b/packages/angular/src/schematics/application/schema.d.ts
index 9f4fd7b36c..2b581da7f0 100644
--- a/packages/angular/src/schematics/application/schema.d.ts
+++ b/packages/angular/src/schematics/application/schema.d.ts
@@ -8,6 +8,7 @@ export interface Schema {
   inlineTemplate?: boolean;
   viewEncapsulation?: 'Emulated' | 'Native' | 'None';
   routing?: boolean;
+  enableIvy?: boolean;
   prefix?: string;
   style?: string;
   skipTests?: boolean;
diff --git a/packages/angular/src/schematics/application/schema.json b/packages/angular/src/schematics/application/schema.json
index 6285746b1c..ebf45f3517 100644
--- a/packages/angular/src/schematics/application/schema.json
+++ b/packages/angular/src/schematics/application/schema.json
@@ -40,6 +40,11 @@
       "description": "Generates a routing module.",
       "default": false
     },
+    "enablyIvy": {
+      "description": "**EXPERIMENTAL** True to create a new app that uses the Ivy rendering engine.",
+      "type": "boolean",
+      "default": false
+    },
     "prefix": {
       "type": "string",
       "format": "html-selector",
diff --git a/packages/angular/src/schematics/karma-project/files/tsconfig.spec.json b/packages/angular/src/schematics/karma-project/files/tsconfig.spec.json
index a29bf2584c..f671d494c4 100644
--- a/packages/angular/src/schematics/karma-project/files/tsconfig.spec.json
+++ b/packages/angular/src/schematics/karma-project/files/tsconfig.spec.json
@@ -1,7 +1,7 @@
 {
   "extends": "./tsconfig.json",
   "compilerOptions": {
-    "outDir": "<%= offsetFromRoot %>dist/out-tsc/<%= projectRoot %>",
+    "outDir": "<%= offsetFromRoot %>dist/out-tsc",
     "types": ["jasmine", "node"]
   },
   "files": ["src/test.ts"],
diff --git a/packages/angular/src/schematics/karma-project/karma-project.spec.ts b/packages/angular/src/schematics/karma-project/karma-project.spec.ts
index 27f39f2d0a..29610e8724 100644
--- a/packages/angular/src/schematics/karma-project/karma-project.spec.ts
+++ b/packages/angular/src/schematics/karma-project/karma-project.spec.ts
@@ -118,7 +118,7 @@ module.exports = function(config) {
       expect(tsConfig).toEqual({
         extends: './tsconfig.json',
         compilerOptions: {
-          outDir: '../../dist/out-tsc/libs/lib1',
+          outDir: '../../dist/out-tsc',
           types: ['jasmine', 'node']
         },
         files: ['src/test.ts'],
@@ -182,7 +182,7 @@ module.exports = function(config) {
       expect(tsConfig).toEqual({
         extends: './tsconfig.json',
         compilerOptions: {
-          outDir: '../../dist/out-tsc/apps/app1',
+          outDir: '../../dist/out-tsc',
           types: ['jasmine', 'node']
         },
         files: ['src/test.ts', 'src/polyfills.ts'],
diff --git a/packages/angular/src/schematics/library/library.ts b/packages/angular/src/schematics/library/library.ts
index 370cd94c0b..2542e0d278 100644
--- a/packages/angular/src/schematics/library/library.ts
+++ b/packages/angular/src/schematics/library/library.ts
@@ -345,9 +345,7 @@ function updateProject(options: NormalizedSchema): Rule {
           extends: `./tsconfig.json`,
           compilerOptions: {
             ...json.compilerOptions,
-            outDir: `${offsetFromRoot(options.projectRoot)}dist/out-tsc/${
-              options.projectRoot
-            }`
+            outDir: `${offsetFromRoot(options.projectRoot)}dist/out-tsc`
           }
         };
       }),
diff --git a/packages/cypress/src/schematics/cypress-project/cypress-project.spec.ts b/packages/cypress/src/schematics/cypress-project/cypress-project.spec.ts
index 9468c667e5..608279b8f4 100644
--- a/packages/cypress/src/schematics/cypress-project/cypress-project.spec.ts
+++ b/packages/cypress/src/schematics/cypress-project/cypress-project.spec.ts
@@ -101,9 +101,7 @@ describe('schematic:cypress-project', () => {
       );
 
       expect(tsconfigJson.extends).toEqual('./tsconfig.json');
-      expect(tsconfigJson.compilerOptions.outDir).toEqual(
-        '../../dist/out-tsc/apps/my-app-e2e/src'
-      );
+      expect(tsconfigJson.compilerOptions.outDir).toEqual('../../dist/out-tsc');
     });
 
     describe('nested', () => {
@@ -180,7 +178,7 @@ describe('schematic:cypress-project', () => {
         );
 
         expect(tsconfigJson.compilerOptions.outDir).toEqual(
-          '../../../dist/out-tsc/apps/my-dir/my-app-e2e/src'
+          '../../../dist/out-tsc'
         );
       });
     });
diff --git a/packages/cypress/src/schematics/cypress-project/files/tsconfig.e2e.json b/packages/cypress/src/schematics/cypress-project/files/tsconfig.e2e.json
index 2496547c0e..9a40f0989b 100644
--- a/packages/cypress/src/schematics/cypress-project/files/tsconfig.e2e.json
+++ b/packages/cypress/src/schematics/cypress-project/files/tsconfig.e2e.json
@@ -2,7 +2,7 @@
   "extends": "./tsconfig.json",
   "compilerOptions": {
     "sourceMap": false,
-    "outDir": "<%= offsetFromRoot %>dist/out-tsc/<%= projectRoot %>/src"
+    "outDir": "<%= offsetFromRoot %>dist/out-tsc"
   },
   "include": ["src/**/*.ts"]
 }
diff --git a/packages/jest/src/schematics/jest-project/files/tsconfig.spec.json b/packages/jest/src/schematics/jest-project/files/tsconfig.spec.json
index cc799b12d5..9cad516d73 100644
--- a/packages/jest/src/schematics/jest-project/files/tsconfig.spec.json
+++ b/packages/jest/src/schematics/jest-project/files/tsconfig.spec.json
@@ -1,7 +1,7 @@
 {
   "extends": "./tsconfig.json",
   "compilerOptions": {
-    "outDir": "<%= offsetFromRoot %>dist/out-tsc/<%= projectRoot %>",
+    "outDir": "<%= offsetFromRoot %>dist/out-tsc",
     "module": "commonjs",
     "types": ["jest", "node"]
   },<% if(setupFile !== 'none') { %>
diff --git a/packages/jest/src/schematics/jest-project/jest-project.spec.ts b/packages/jest/src/schematics/jest-project/jest-project.spec.ts
index db09dffc5d..b859c5aed1 100644
--- a/packages/jest/src/schematics/jest-project/jest-project.spec.ts
+++ b/packages/jest/src/schematics/jest-project/jest-project.spec.ts
@@ -123,7 +123,7 @@ describe('jestProject', () => {
       extends: './tsconfig.json',
       compilerOptions: {
         module: 'commonjs',
-        outDir: '../../dist/out-tsc/libs/lib1',
+        outDir: '../../dist/out-tsc',
         types: ['jest', 'node']
       },
       files: ['src/test-setup.ts'],
diff --git a/packages/node/src/schematics/application/application.spec.ts b/packages/node/src/schematics/application/application.spec.ts
index caea971005..8532d7c9d2 100644
--- a/packages/node/src/schematics/application/application.spec.ts
+++ b/packages/node/src/schematics/application/application.spec.ts
@@ -87,9 +87,7 @@ describe('app', () => {
           getFileContent(tree, 'apps/my-node-app/tsconfig.app.json')
         )
       );
-      expect(tsconfigApp.compilerOptions.outDir).toEqual(
-        '../../dist/out-tsc/apps/my-node-app'
-      );
+      expect(tsconfigApp.compilerOptions.outDir).toEqual('../../dist/out-tsc');
       expect(tsconfigApp.extends).toEqual('./tsconfig.json');
 
       const tslintJson = JSON.parse(
@@ -162,7 +160,7 @@ describe('app', () => {
         {
           path: 'apps/my-dir/my-node-app/tsconfig.app.json',
           lookupFn: json => json.compilerOptions.outDir,
-          expectedValue: '../../../dist/out-tsc/apps/my-dir/my-node-app'
+          expectedValue: '../../../dist/out-tsc'
         },
         {
           path: 'apps/my-dir/my-node-app/tsconfig.app.json',
diff --git a/packages/node/src/schematics/application/files/app/tsconfig.app.json b/packages/node/src/schematics/application/files/app/tsconfig.app.json
index d071717839..3040988763 100644
--- a/packages/node/src/schematics/application/files/app/tsconfig.app.json
+++ b/packages/node/src/schematics/application/files/app/tsconfig.app.json
@@ -1,7 +1,7 @@
 {
   "extends": "./tsconfig.json",
   "compilerOptions": {
-    "outDir": "<%= offset %>dist/out-tsc/<%= root %>",
+    "outDir": "<%= offset %>dist/out-tsc",
     "types": ["node"]
   },
   "exclude": ["**/*.spec.ts"],
diff --git a/packages/react/src/schematics/application/application.spec.ts b/packages/react/src/schematics/application/application.spec.ts
index bf5692da4c..7d1ad41d22 100644
--- a/packages/react/src/schematics/application/application.spec.ts
+++ b/packages/react/src/schematics/application/application.spec.ts
@@ -57,9 +57,7 @@ describe('app', () => {
       const tsconfigApp = JSON.parse(
         stripJsonComments(tree.readContent('apps/my-app/tsconfig.app.json'))
       );
-      expect(tsconfigApp.compilerOptions.outDir).toEqual(
-        '../../dist/out-tsc/apps/my-app'
-      );
+      expect(tsconfigApp.compilerOptions.outDir).toEqual('../../dist/out-tsc');
       expect(tsconfigApp.extends).toEqual('./tsconfig.json');
 
       const tslintJson = JSON.parse(
@@ -71,9 +69,7 @@ describe('app', () => {
       const tsconfigE2E = JSON.parse(
         stripJsonComments(tree.readContent('apps/my-app-e2e/tsconfig.e2e.json'))
       );
-      expect(tsconfigE2E.compilerOptions.outDir).toEqual(
-        '../../dist/out-tsc/apps/my-app-e2e/src'
-      );
+      expect(tsconfigE2E.compilerOptions.outDir).toEqual('../../dist/out-tsc');
       expect(tsconfigE2E.extends).toEqual('./tsconfig.json');
     });
   });
@@ -148,7 +144,7 @@ describe('app', () => {
         {
           path: 'apps/my-dir/my-app/tsconfig.app.json',
           lookupFn: json => json.compilerOptions.outDir,
-          expectedValue: '../../../dist/out-tsc/apps/my-dir/my-app'
+          expectedValue: '../../../dist/out-tsc'
         },
         {
           path: 'apps/my-dir/my-app-e2e/tsconfig.json',
@@ -158,7 +154,7 @@ describe('app', () => {
         {
           path: 'apps/my-dir/my-app-e2e/tsconfig.e2e.json',
           lookupFn: json => json.compilerOptions.outDir,
-          expectedValue: '../../../dist/out-tsc/apps/my-dir/my-app-e2e/src'
+          expectedValue: '../../../dist/out-tsc'
         },
         {
           path: 'apps/my-dir/my-app/tslint.json',
diff --git a/packages/react/src/schematics/application/files/app/tsconfig.app.json b/packages/react/src/schematics/application/files/app/tsconfig.app.json
index b0cb942af2..f6326068a4 100644
--- a/packages/react/src/schematics/application/files/app/tsconfig.app.json
+++ b/packages/react/src/schematics/application/files/app/tsconfig.app.json
@@ -1,7 +1,7 @@
 {
   "extends": "./tsconfig.json",
   "compilerOptions": {
-    "outDir": "<%= offsetFromRoot %>dist/out-tsc/<%= appProjectRoot %>",
+    "outDir": "<%= offsetFromRoot %>dist/out-tsc",
     "types": []
   },
   "exclude": ["**/*.spec.ts"],
diff --git a/packages/react/src/schematics/library/files/lib/tsconfig.lib.json b/packages/react/src/schematics/library/files/lib/tsconfig.lib.json
index 40457f8168..99e059b511 100644
--- a/packages/react/src/schematics/library/files/lib/tsconfig.lib.json
+++ b/packages/react/src/schematics/library/files/lib/tsconfig.lib.json
@@ -1,7 +1,7 @@
 {
   "extends": "./tsconfig.json",
   "compilerOptions": {
-    "outDir": "<%= offsetFromRoot %>dist/out-tsc/<%= projectRoot %>",
+    "outDir": "<%= offsetFromRoot %>dist/out-tsc",
     "types": []
   },
   "exclude": ["**/*.spec.ts", "**/*.spec.tsx"],
diff --git a/packages/schematics/migrations/update-8-0-0/update-8-0-0.spec.ts b/packages/schematics/migrations/update-8-0-0/update-8-0-0.spec.ts
index fd9925db69..32add48c44 100644
--- a/packages/schematics/migrations/update-8-0-0/update-8-0-0.spec.ts
+++ b/packages/schematics/migrations/update-8-0-0/update-8-0-0.spec.ts
@@ -36,6 +36,24 @@ describe('Update 8-0-0', () => {
         initialTree
       )
       .toPromise();
+    initialTree = await schematicRunner
+      .callRule(
+        updateJsonInTree('tsconfig.json', json => ({
+          compilerOptions: {}
+        })),
+        initialTree
+      )
+      .toPromise();
+    initialTree = await schematicRunner
+      .callRule(
+        updateJsonInTree('tsconfig.app.json', json => ({
+          compilerOptions: {
+            outDir: '../../dist/out-tsc/apps/blah'
+          }
+        })),
+        initialTree
+      )
+      .toPromise();
     initialTree = await schematicRunner
       .callRule(
         updateJsonInTree('angular.json', json => ({
@@ -164,6 +182,20 @@ describe('Update 8-0-0', () => {
     });
   });
 
+  describe('set root dir', () => {
+    it('should set root dir and update out dirs', async () => {
+      const tree = await schematicRunner
+        .runSchematicAsync('update-8.0.0', {}, initialTree)
+        .toPromise();
+      const rootTsConfig = readJsonInTree(tree, 'tsconfig.json');
+      expect(rootTsConfig.compilerOptions.rootDir).toEqual('.');
+
+      const appTsConfig = readJsonInTree(tree, 'tsconfig.app.json');
+      console.log(appTsConfig);
+      expect(appTsConfig.compilerOptions.outDir).toEqual('../../dist/out-tsc');
+    });
+  });
+
   describe('jest config', () => {
     it('should have the plugin path migrated', async () => {
       initialTree.create(
diff --git a/packages/schematics/migrations/update-8-0-0/update-8-0-0.ts b/packages/schematics/migrations/update-8-0-0/update-8-0-0.ts
index 2930b3917e..33ddd5dfa5 100644
--- a/packages/schematics/migrations/update-8-0-0/update-8-0-0.ts
+++ b/packages/schematics/migrations/update-8-0-0/update-8-0-0.ts
@@ -262,6 +262,33 @@ const updateDefaultCollection = (host: Tree) => {
   });
 };
 
+const setRootDirAndUpdateOurDir = (host: Tree) => {
+  host.visit(path => {
+    if (!path.endsWith('.json')) {
+      return;
+    }
+
+    const json = host.read(path).toString();
+    const match = json.match(/"outDir"\s*:\s*"([^"]+)"/);
+    if (match) {
+      const outParts = match[1].split('out-tsc');
+      if (outParts.length > 1) {
+        const updatedJson = json.replace(
+          /"outDir"\s*:\s*"([^"]+)"/,
+          `"outDir": "${outParts[0]}out-tsc"`
+        );
+        host.overwrite(path, updatedJson);
+      }
+    }
+  });
+
+  updateJsonInTree('tsconfig.json', json => {
+    json.compilerOptions = json.compilerOptions || {};
+    json.compilerOptions.rootDir = '.';
+    return json;
+  })(host, null);
+};
+
 export const runAngularMigrations: Rule = (
   host: Tree,
   context: SchematicContext
@@ -314,6 +341,7 @@ export default function(): Rule {
     updateTslintRules,
     addDependencies(),
     updateDefaultCollection,
+    setRootDirAndUpdateOurDir,
     formatFiles()
   ]);
 }
diff --git a/packages/web/src/schematics/application/application.spec.ts b/packages/web/src/schematics/application/application.spec.ts
index 0ef528932e..3ffce0c504 100644
--- a/packages/web/src/schematics/application/application.spec.ts
+++ b/packages/web/src/schematics/application/application.spec.ts
@@ -59,9 +59,7 @@ describe('app', () => {
       const tsconfigApp = JSON.parse(
         stripJsonComments(tree.readContent('apps/my-app/tsconfig.app.json'))
       );
-      expect(tsconfigApp.compilerOptions.outDir).toEqual(
-        '../../dist/out-tsc/apps/my-app'
-      );
+      expect(tsconfigApp.compilerOptions.outDir).toEqual('../../dist/out-tsc');
       expect(tsconfigApp.extends).toEqual('./tsconfig.json');
 
       const tslintJson = JSON.parse(
@@ -73,9 +71,7 @@ describe('app', () => {
       const tsconfigE2E = JSON.parse(
         stripJsonComments(tree.readContent('apps/my-app-e2e/tsconfig.e2e.json'))
       );
-      expect(tsconfigE2E.compilerOptions.outDir).toEqual(
-        '../../dist/out-tsc/apps/my-app-e2e/src'
-      );
+      expect(tsconfigE2E.compilerOptions.outDir).toEqual('../../dist/out-tsc');
       expect(tsconfigE2E.extends).toEqual('./tsconfig.json');
     });
   });
@@ -150,7 +146,7 @@ describe('app', () => {
         {
           path: 'apps/my-dir/my-app/tsconfig.app.json',
           lookupFn: json => json.compilerOptions.outDir,
-          expectedValue: '../../../dist/out-tsc/apps/my-dir/my-app'
+          expectedValue: '../../../dist/out-tsc'
         },
         {
           path: 'apps/my-dir/my-app-e2e/tsconfig.json',
@@ -160,7 +156,7 @@ describe('app', () => {
         {
           path: 'apps/my-dir/my-app-e2e/tsconfig.e2e.json',
           lookupFn: json => json.compilerOptions.outDir,
-          expectedValue: '../../../dist/out-tsc/apps/my-dir/my-app-e2e/src'
+          expectedValue: '../../../dist/out-tsc'
         },
         {
           path: 'apps/my-dir/my-app/tslint.json',
diff --git a/packages/web/src/schematics/application/files/app/tsconfig.app.json b/packages/web/src/schematics/application/files/app/tsconfig.app.json
index b0cb942af2..f6326068a4 100644
--- a/packages/web/src/schematics/application/files/app/tsconfig.app.json
+++ b/packages/web/src/schematics/application/files/app/tsconfig.app.json
@@ -1,7 +1,7 @@
 {
   "extends": "./tsconfig.json",
   "compilerOptions": {
-    "outDir": "<%= offsetFromRoot %>dist/out-tsc/<%= appProjectRoot %>",
+    "outDir": "<%= offsetFromRoot %>dist/out-tsc",
     "types": []
   },
   "exclude": ["**/*.spec.ts"],
diff --git a/packages/workspace/src/schematics/library/files/lib/tsconfig.lib.json b/packages/workspace/src/schematics/library/files/lib/tsconfig.lib.json
index 72a1b6fc38..f6326068a4 100644
--- a/packages/workspace/src/schematics/library/files/lib/tsconfig.lib.json
+++ b/packages/workspace/src/schematics/library/files/lib/tsconfig.lib.json
@@ -1,7 +1,7 @@
 {
   "extends": "./tsconfig.json",
   "compilerOptions": {
-    "outDir": "<%= offsetFromRoot %>dist/out-tsc/<%= projectRoot %>",
+    "outDir": "<%= offsetFromRoot %>dist/out-tsc",
     "types": []
   },
   "exclude": ["**/*.spec.ts"],
diff --git a/packages/workspace/src/schematics/ng-add/ng-add.ts b/packages/workspace/src/schematics/ng-add/ng-add.ts
index adfe8490d4..61f49795c2 100755
--- a/packages/workspace/src/schematics/ng-add/ng-add.ts
+++ b/packages/workspace/src/schematics/ng-add/ng-add.ts
@@ -249,23 +249,17 @@ function updateTsConfigsJson(options: Schema) {
     const offset = '../../';
     updateJsonFile(app.architect.build.options.tsConfig, json => {
       json.extends = `${offset}tsconfig.json`;
-      json.compilerOptions.outDir = `${offset}dist/out-tsc/apps/${
-        options.name
-      }`;
+      json.compilerOptions.outDir = `${offset}dist/out-tsc`;
     });
 
     updateJsonFile(app.architect.test.options.tsConfig, json => {
       json.extends = `${offset}tsconfig.json`;
-      json.compilerOptions.outDir = `${offset}dist/out-tsc/apps/${
-        options.name
-      }`;
+      json.compilerOptions.outDir = `${offset}dist/out-tsc`;
     });
 
     if (app.architect.server) {
       updateJsonFile(app.architect.server.options.tsConfig, json => {
-        json.compilerOptions.outDir = `${offset}dist/out-tsc/apps/${
-          options.name
-        }-server`;
+        json.compilerOptions.outDir = `${offset}dist/out-tsc`;
       });
     }
 
@@ -274,9 +268,7 @@ function updateTsConfigsJson(options: Schema) {
         json.extends = `${offsetFromRoot(e2eProject.root)}tsconfig.json`;
         json.compilerOptions = {
           ...json.compilerOptions,
-          outDir: `${offsetFromRoot(e2eProject.root)}dist/out-tsc/${
-            e2eProject.root
-          }`
+          outDir: `${offsetFromRoot(e2eProject.root)}dist/out-tsc`
         };
       });
     }
diff --git a/packages/workspace/src/schematics/workspace/files/tsconfig.json b/packages/workspace/src/schematics/workspace/files/tsconfig.json
index c51eec1a54..f4c1f18d6b 100644
--- a/packages/workspace/src/schematics/workspace/files/tsconfig.json
+++ b/packages/workspace/src/schematics/workspace/files/tsconfig.json
@@ -1,6 +1,7 @@
 {
   "compileOnSave": false,
   "compilerOptions": {
+    "rootDir": ".",
     "sourceMap": true,
     "declaration": false,
     "moduleResolution": "node",
diff --git a/scripts/build.sh b/scripts/build.sh
index 6aea874df9..2304342334 100755
--- a/scripts/build.sh
+++ b/scripts/build.sh
@@ -14,6 +14,11 @@ echo "Compiling Typescript..."
 ./node_modules/.bin/ngc
 echo "Compiled Typescript"
 
+rm build/packages/angular/testing/nrwl-angular-testing.metadata.json
+rm build/packages/angular/testing/index.metadata.json
+rm build/packages/workspace/index.metadata.json
+rm build/packages/workspace/testing.metadata.json
+
 #TODO This is a temporary hack until we can publish named umds
 sed -i.bak "s/define(\[/define('@nrwl\/angular',\[/" build/packages/angular/bundles/nrwl-angular.umd.js
 sed -i.bak "s/define(\[/define('@nrwl\/angular',\[/" build/packages/angular/bundles/nrwl-angular.umd.min.js