diff --git a/plugins/factory-plugin/src/projects.ts b/plugins/factory-plugin/src/projects.ts
index a17dddf03..e5ea41b12 100644
--- a/plugins/factory-plugin/src/projects.ts
+++ b/plugins/factory-plugin/src/projects.ts
@@ -27,41 +27,43 @@ export function updateOrCreateGitProjectInDevfile(
     projectGitLocation: string,
     projectGitRemoteBranch: string
 ): cheApi.workspace.devfile.Project[] {
-
     if (!projects) {
         projects = [];
     }
 
-    for (const project of projects) {
-        const currentProjectPath = project.clonePath ? project.clonePath : project.name;
-        if (currentProjectPath === projectPath) {
-            project.source.type = 'git';
-            project.source.location = projectGitLocation;
-            project.source.branch = projectGitRemoteBranch;
-
-            return projects;
+    const filteredProject = projects.filter(project => (project.clonePath ? project.clonePath : project.name) === projectPath);
+    if (filteredProject.length === 0) {
+        const projectName = projectPath.split('/').pop();
+        if (projectPath === projectName) {
+            projectPath = undefined;
         }
+        // create a new one
+        projects.push({
+            name: projectName ? projectName : 'new-project',
+            source: {
+                location: projectGitLocation,
+                type: 'git',
+                branch: projectGitRemoteBranch
+            },
+            clonePath: projectPath
+        });
+        return projects;
     }
 
-    // project not found in the list of existed, create a new one
-    const projectPathSegments = projectPath.split('/');
-    const isCustomPath = projectPathSegments.filter(segment => segment !== '').length !== 1;
-    const projectName = projectPathSegments.pop();
-
-    const newProject: cheApi.workspace.devfile.Project = {
-        'name': projectName ? projectName : 'new-project',
-        'source': {
-            'type': 'git',
-            'location': projectGitLocation,
-            'branch': projectGitRemoteBranch
+    filteredProject.forEach(project => {
+        if (!project.source) {
+            project.source = {
+                location: projectGitLocation,
+                type: 'git',
+                branch: projectGitRemoteBranch
+            };
         }
-    };
-
-    if (isCustomPath) {
-        newProject.clonePath = projectPath;
-    }
-
-    projects.push(newProject);
+        project.source.location = projectGitLocation;
+        project.source.branch = projectGitRemoteBranch;
+        delete project.source.startPoint;
+        delete project.source.tag;
+        delete project.source.commitId;
+    });
 
     return projects;
 }
@@ -77,9 +79,8 @@ export function deleteProjectFromDevfile(
     projects: cheApi.workspace.devfile.Project[],
     projectPath: string
 ): cheApi.workspace.devfile.Project[] {
-
-    if (!projects || projects.length === 0) {
-        return [];
+    if (!projects) {
+        projects = [];
     }
 
     for (let i = 0; i < projects.length; i++) {
@@ -153,7 +154,8 @@ export function deleteProjectFromWorkspaceConfig(
 ): cheApi.workspace.ProjectConfig[] {
     for (let i = 0; i < projects.length; i++) {
         const project = projects[i];
-        if (project.path === projectPath) {
+        const currentProjectPath = project.path ? project.path : project.name;
+        if (currentProjectPath === projectPath) {
             projects.splice(i, 1);
             break;
         }
diff --git a/plugins/factory-plugin/tests/projects.spec.ts b/plugins/factory-plugin/tests/projects.spec.ts
index 30a1e8be8..2f4652002 100644
--- a/plugins/factory-plugin/tests/projects.spec.ts
+++ b/plugins/factory-plugin/tests/projects.spec.ts
@@ -12,264 +12,229 @@ import { che as cheApi } from '@eclipse-che/api';
 import * as projecthelper from '../src/projects';
 
 describe('Devfile: Projects:', () => {
-    const CHE_REPOSITORY = 'https://github.com/eclipse/che.git';
-    const CHE_THEIA_REPOSITORY = 'https://github.com/eclipse/che-theia.git';
-    const BRANCH1 = 'che-13112';
-    const BRANCH2 = 'issue-12321';
-    const CUSTOM_PROJECT_PATH = 'theia/packages/che-theia';
-
-    test('Should be able to create project if no projects defined', () => {
-        const projects: cheApi.workspace.devfile.Project[] = [];
-
-        projecthelper.updateOrCreateGitProjectInDevfile(
-            projects,
-            'che',
-            CHE_REPOSITORY,
-            BRANCH1
-        );
-
-        expect(projects.length).toBe(1);
-        expect(projects[0].name).toBe('che');
-        expect(projects[0].source.location).toBe(CHE_REPOSITORY);
-        expect(projects[0].source.branch).toBe(BRANCH1);
-    });
-
-    test('Should be able to add project into existing projects list', () => {
-        const projects: cheApi.workspace.devfile.Project[] = [
-            {
-                name: 'che',
-                source: {
-                    type: 'git',
-                    location: CHE_REPOSITORY,
-                    branch: BRANCH1
-                }
-            }
-        ];
-
-        projecthelper.updateOrCreateGitProjectInDevfile(
-            projects,
-            'che-theia',
-            CHE_THEIA_REPOSITORY,
-            BRANCH2
-        );
-
-        expect(projects.length).toBe(2);
-
-        expect(projects[0].name).toBe('che');
-        expect(projects[0].source.location).toBe(CHE_REPOSITORY);
-        expect(projects[0].source.branch).toBe(BRANCH1);
-
-        expect(projects[1].name).toBe('che-theia');
-        expect(projects[1].source.location).toBe(CHE_THEIA_REPOSITORY);
-        expect(projects[1].source.branch).toBe(BRANCH2);
-    });
-
-    test('Should be able to delete existing project', () => {
-        const projects: cheApi.workspace.devfile.Project[] = [
-            {
-                name: 'che',
-                source: {
-                    type: 'git',
-                    location: CHE_REPOSITORY,
-                    branch: BRANCH1
-                }
-            },
-            {
-                name: 'che-theia',
-                source: {
-                    type: 'git',
-                    location: CHE_THEIA_REPOSITORY,
-                    branch: BRANCH2
+    describe('Testing basic functionality:', () => {
+
+        test('Should be able to create project if no projects defined', () => {
+            const projects: cheApi.workspace.devfile.Project[] = [];
+
+            projecthelper.updateOrCreateGitProjectInDevfile(
+                projects,
+                'che',
+                'https://github.com/eclipse/che.git',
+                'che-13112'
+            );
+
+            expect(projects.length).toBe(1);
+            expect(projects[0].name).toBe('che');
+            expect(projects[0].clonePath).toBe(undefined);
+            expect(projects[0].source.location).toBe('https://github.com/eclipse/che.git');
+            expect(projects[0].source.branch).toBe('che-13112');
+        });
+
+        test('Should be able to add project into existing projects list', () => {
+            const projects: cheApi.workspace.devfile.Project[] = [
+                {
+                    name: 'che',
+                    source: {
+                        type: 'git',
+                        location: 'https://github.com/eclipse/che.git',
+                        branch: 'che-13112'
+                    }
                 }
-            }
-        ];
-
-        projecthelper.deleteProjectFromDevfile(
-            projects,
-            'che-theia'
-        );
-
-        expect(projects.length).toBe(1);
-
-        expect(projects[0].name).toBe('che');
-        expect(projects[0].source.location).toBe(CHE_REPOSITORY);
-        expect(projects[0].source.branch).toBe(BRANCH1);
-    });
-
-    test('Should be able to add project with custom location', () => {
-        const projects: cheApi.workspace.devfile.Project[] = [
-            {
-                name: 'che',
-                source: {
-                    type: 'git',
-                    location: CHE_REPOSITORY,
-                    branch: BRANCH1
+            ];
+
+            projecthelper.updateOrCreateGitProjectInDevfile(
+                projects,
+                'che-theia',
+                'https://github.com/eclipse/che-theia.git',
+                'issue-12321'
+            );
+
+            expect(projects.length).toBe(2);
+            expect(projects[0].name).toBe('che');
+            expect(projects[0].clonePath).toBe(undefined);
+            expect(projects[0].source.location).toBe('https://github.com/eclipse/che.git');
+            expect(projects[0].source.branch).toBe('che-13112');
+            expect(projects[1].name).toBe('che-theia');
+            expect(projects[1].clonePath).toBe(undefined);
+            expect(projects[1].source.location).toBe('https://github.com/eclipse/che-theia.git');
+            expect(projects[1].source.branch).toBe('issue-12321');
+        });
+
+        test('Should be able to delete existing project', () => {
+            const projects: cheApi.workspace.devfile.Project[] = [
+                {
+                    name: 'che',
+                    source: {
+                        type: 'git',
+                        location: 'https://github.com/eclipse/che.git',
+                        branch: 'che-13112'
+                    }
+                },
+                {
+                    name: 'che-theia',
+                    source: {
+                        type: 'git',
+                        location: 'https://github.com/eclipse/che-theia.git',
+                        branch: 'issue-12321'
+                    }
                 }
-            }
-        ];
-
-        projecthelper.updateOrCreateGitProjectInDevfile(
-            projects,
-            CUSTOM_PROJECT_PATH,
-            CHE_THEIA_REPOSITORY,
-            BRANCH2
-        );
-
-        expect(projects.length).toBe(2);
-
-        expect(projects[0].name).toBe('che');
-        expect(projects[0].source.location).toBe(CHE_REPOSITORY);
-        expect(projects[0].source.branch).toBe(BRANCH1);
-
-        expect(projects[1].name).toBe('che-theia');
-        expect(projects[1].clonePath).toBe(CUSTOM_PROJECT_PATH);
-        expect(projects[1].source.location).toBe(CHE_THEIA_REPOSITORY);
-        expect(projects[1].source.branch).toBe(BRANCH2);
-    });
-
-    test('Should be able to delete project with custom location', () => {
-        const projects: cheApi.workspace.devfile.Project[] = [
-            {
-                name: 'che',
-                source: {
-                    type: 'git',
-                    location: CHE_REPOSITORY,
-                    branch: BRANCH1
+            ];
+
+            projecthelper.deleteProjectFromDevfile(
+                projects,
+                'che-theia'
+            );
+
+            expect(projects.length).toBe(1);
+            expect(projects[0].name).toBe('che');
+            expect(projects[0].source.location).toBe('https://github.com/eclipse/che.git');
+            expect(projects[0].source.branch).toBe('che-13112');
+        });
+
+        test('Should be able to add project with custom location', () => {
+            const projects: cheApi.workspace.devfile.Project[] = [
+                {
+                    name: 'che',
+                    source: {
+                        type: 'git',
+                        location: 'https://github.com/eclipse/che.git',
+                        branch: 'che-13112'
+                    }
                 }
-            },
-            {
-                name: 'che-theia',
-                clonePath: CUSTOM_PROJECT_PATH,
-                source: {
-                    type: 'git',
-                    location: CHE_THEIA_REPOSITORY,
-                    branch: BRANCH2
+            ];
+
+            projecthelper.updateOrCreateGitProjectInDevfile(
+                projects,
+                'theia/packages/che-theia',
+                'https://github.com/eclipse/che-theia.git',
+                'issue-12321'
+            );
+
+            expect(projects.length).toBe(2);
+            expect(projects[0].name).toBe('che');
+            expect(projects[0].clonePath).toBe(undefined);
+            expect(projects[0].source.location).toBe('https://github.com/eclipse/che.git');
+            expect(projects[0].source.branch).toBe('che-13112');
+            expect(projects[1].name).toBe('che-theia');
+            expect(projects[1].clonePath).toBe('theia/packages/che-theia');
+            expect(projects[1].source.location).toBe('https://github.com/eclipse/che-theia.git');
+            expect(projects[1].source.branch).toBe('issue-12321');
+        });
+
+        test('Should be able to delete project with custom location', () => {
+            const projects: cheApi.workspace.devfile.Project[] = [
+                {
+                    name: 'che',
+                    source: {
+                        type: 'git',
+                        location: 'https://github.com/eclipse/che.git',
+                        branch: 'che-13112'
+                    }
+                },
+                {
+                    name: 'che-theia',
+                    clonePath: 'theia/packages/che-theia',
+                    source: {
+                        type: 'git',
+                        location: 'https://github.com/eclipse/che-theia.git',
+                        branch: 'issue-12321'
+                    }
                 }
-            }
-        ];
-
-        projecthelper.deleteProjectFromDevfile(
-            projects,
-            CUSTOM_PROJECT_PATH
-        );
-
-        expect(projects.length).toBe(1);
-
-        expect(projects[0].name).toBe('che');
-        expect(projects[0].source.location).toBe(CHE_REPOSITORY);
-        expect(projects[0].source.branch).toBe(BRANCH1);
+            ];
+
+            projecthelper.deleteProjectFromDevfile(
+                projects,
+                'theia/packages/che-theia'
+            );
+
+            expect(projects.length).toBe(1);
+            expect(projects[0].name).toBe('che');
+            expect(projects[0].source.location).toBe('https://github.com/eclipse/che.git');
+            expect(projects[0].source.branch).toBe('che-13112');
+        });
     });
-});
-
-describe('Workspace config: Testing projects updater when file is triggered', () => {
 
-    test('update and create project', async () => {
-        const projects: cheApi.workspace.ProjectConfig[] = [
-            {
-                'name': 'theia',
-                'attributes': {},
-                'source': {
-                    'location': 'https://github.com/theia-ide/theia.git',
-                    'type': 'git',
-                    'parameters': {}
+    describe('Testing projects updater when file is triggered:', () => {
+        test('update and create project', async () => {
+            const projects: cheApi.workspace.devfile.Project[] = [
+                {
+                    'name': 'theia',
+                    'source': {
+                        'type': 'git',
+                        'location': 'https://github.com/theia-ide/theia.git'
+                    }
                 },
-                'path': '/theia',
-                'description': '',
-                'mixins': [],
-                'problems': []
-            },
-            {
-                'links': [],
-                'name': 'che-theia-factory-extension',
-                'attributes': {},
-                'type': 'blank',
-                'source': {
-                    'location': 'https://github.com/eclipse/che-theia-factory-extension.git',
-                    'type': 'git',
-                    'parameters': {
+                {
+                    'name': 'che-theia-factory-extension',
+                    'source': {
+                        'type': 'git',
+                        'location': 'https://github.com/eclipse/che-theia-factory-extension.git',
                         'branch': 'master',
                         'tag': 'v42.0'
                     }
-                },
-                'path': '/che-theia-factory-extension',
-                'description': '',
-                'mixins': [],
-                'problems': []
-            }
-        ];
-        expect(projects[0].source.location).toBe('https://github.com/theia-ide/theia.git');
-        expect(projects[1].source.location).toBe('https://github.com/eclipse/che-theia-factory-extension.git');
-
-        projecthelper.updateOrCreateGitProjectInWorkspaceConfig(projects,
-                                               '/che-theia-factory-extension',
-                                               'https://github.com/sunix/che-theia-factory-extension.git',
-                                               'wip-sunix');
-        expect(projects[1].source.location).toBe('https://github.com/sunix/che-theia-factory-extension.git');
-        expect(projects[1].source.parameters['branch']).toBe('wip-sunix');
-        expect(projects[1].source.parameters['tag']).toBe(undefined);
-
-        projecthelper.updateOrCreateGitProjectInWorkspaceConfig(projects,
-                                               '/che/che-theia-factory-extension',
-                                               'https://github.com/sunix/che-theia-factory-extension.git',
-                                               'wip-theia');
-        expect(projects[2].source.location).toBe('https://github.com/sunix/che-theia-factory-extension.git');
-        expect(projects[2].source.parameters['branch']).toBe('wip-theia');
-        expect(projects[2].name).toBe('che-theia-factory-extension');
-    });
-
-    test('delete project', async () => {
-        const projects: cheApi.workspace.ProjectConfig[] = [
-            {
-                'name': 'theia',
-                'attributes': {},
-                'source': {
-                    'location': 'https://github.com/theia-ide/theia.git',
-                    'type': 'git',
-                    'parameters': {}
-                },
-                'path': '/theia',
-                'description': '',
-                'mixins': [],
-                'problems': []
-            },
-            {
-                'links': [],
-                'name': 'che-theia-factory-extension',
-                'attributes': {},
-                'type': 'blank',
-                'source': {
-                    'location': 'https://github.com/eclipse/che-theia-factory-extension.git',
-                    'type': 'git',
-                    'parameters': {
-                        'branch': 'master'
+                }
+            ];
+            expect(projects[0].source.location).toBe('https://github.com/theia-ide/theia.git');
+            expect(projects[1].source.location).toBe('https://github.com/eclipse/che-theia-factory-extension.git');
+
+            projecthelper.updateOrCreateGitProjectInDevfile(projects,
+                                                   'che-theia-factory-extension',
+                                                   'https://github.com/sunix/che-theia-factory-extension.git',
+                                                   'wip-sunix');
+            expect(projects[1].source.location).toBe('https://github.com/sunix/che-theia-factory-extension.git');
+            expect(projects[1].source['branch']).toBe('wip-sunix');
+            expect(projects[1].source['tag']).toBe(undefined);
+
+            projecthelper.updateOrCreateGitProjectInDevfile(projects,
+                                                   '/che/che-theia-factory-extension',
+                                                   'https://github.com/sunix/che-theia-factory-extension.git',
+                                                   'wip-theia');
+            expect(projects[2].source.location).toBe('https://github.com/sunix/che-theia-factory-extension.git');
+            expect(projects[2].source['branch']).toBe('wip-theia');
+            expect(projects[2].name).toBe('che-theia-factory-extension');
+        });
+
+        test('delete project', async () => {
+            const projects: cheApi.workspace.devfile.Project[] = [
+                {
+                    'name': 'theia',
+                    'source': {
+                        'type': 'git',
+                        'location': 'https://github.com/theia-ide/theia.git'
                     }
                 },
-                'path': '/che-theia-factory-extension',
-                'description': '',
-                'mixins': [],
-                'problems': []
-            }
-        ];
-        expect(projects[0].source.location).toBe('https://github.com/theia-ide/theia.git');
-        expect(projects[1].source.location).toBe('https://github.com/eclipse/che-theia-factory-extension.git');
-
-        projecthelper.deleteProjectFromWorkspaceConfig(projects, '/che-theia-factory-extension');
-        expect(projects.length).toBe(1);
-        expect(projects[0].source.location).toBe('https://github.com/theia-ide/theia.git');
-
-        projecthelper.deleteProjectFromWorkspaceConfig(projects, '/theia');
-        expect(projects.length).toBe(0);
-
-        projecthelper.updateOrCreateGitProjectInWorkspaceConfig(projects,
-                                               '/che/che-theia-factory-extension',
-                                               'https://github.com/sunix/che-theia-factory-extension.git',
-                                               'wip-theia');
-        expect(projects.length).toBe(1);
-        expect(projects[0].source.location).toBe('https://github.com/sunix/che-theia-factory-extension.git');
-        expect(projects[0].source.parameters['branch']).toBe('wip-theia');
-        expect(projects[0].name).toBe('che-theia-factory-extension');
-
-        projecthelper.deleteProjectFromWorkspaceConfig(projects, '/che/che-theia-factory-extension');
-        expect(projects.length).toBe(0);
+                {
+                    'name': 'che-theia-factory-extension',
+                    'source': {
+                        'type': 'git',
+                        'location': 'https://github.com/eclipse/che-theia-factory-extension.git',
+                        'branch': 'master',
+                        'tag': 'v42.0'
+                    }
+                }
+            ];
+            expect(projects[0].source.location).toBe('https://github.com/theia-ide/theia.git');
+            expect(projects[1].source.location).toBe('https://github.com/eclipse/che-theia-factory-extension.git');
+
+            projecthelper.deleteProjectFromDevfile(projects, 'che-theia-factory-extension');
+            expect(projects.length).toBe(1);
+            expect(projects[0].source.location).toBe('https://github.com/theia-ide/theia.git');
+
+            projecthelper.deleteProjectFromDevfile(projects, 'theia');
+            expect(projects.length).toBe(0);
+
+            projecthelper.updateOrCreateGitProjectInDevfile(projects,
+                                                   'che/che-theia-factory-extension',
+                                                   'https://github.com/sunix/che-theia-factory-extension.git',
+                                                   'wip-theia');
+            expect(projects.length).toBe(1);
+            expect(projects[0].source.location).toBe('https://github.com/sunix/che-theia-factory-extension.git');
+            expect(projects[0].source.branch).toBe('wip-theia');
+            expect(projects[0].name).toBe('che-theia-factory-extension');
+
+            projecthelper.deleteProjectFromDevfile(projects, 'che/che-theia-factory-extension');
+            expect(projects.length).toBe(0);
+        });
     });
 });