diff --git a/lib/contracts/code_generator.js b/lib/contracts/code_generator.js
index 3bb86e54..ef16668a 100644
--- a/lib/contracts/code_generator.js
+++ b/lib/contracts/code_generator.js
@@ -155,7 +155,7 @@ class CodeGenerator {
       for (let className in this.contractsManager.contracts) {
         let contract = this.contractsManager.contracts[className];
         let abi = JSON.stringify(contract.abiDefinition);
-        result += Templates.vanilla_contract({className: className, abi: abi, contract: contract});
+        result += Templates.vanilla_contract({className: className, abi: abi, contract: contract, gasLimit: 6000000});
       }
       return result;
     }
@@ -185,7 +185,7 @@ class CodeGenerator {
            let contractAddress = contract.deployedAddress ? ("'" + contract.deployedAddress + "'") : "undefined";
           block += Templates.embarkjs_contract({className: className, abi: abi, contract: contract, contractAddress: contractAddress, gasEstimates: gasEstimates});
         } else {
-          block += Templates.vanilla_contract({className: className, abi: abi, contract: contract});
+          block += Templates.vanilla_contract({className: className, abi: abi, contract: contract, gasLimit: (isDeployment ? 6000000 : false)});
         }
         result += Templates.exec_when_ready({block: block});
 
@@ -195,11 +195,11 @@ class CodeGenerator {
     return result;
   }
 
-  generateContractCode(contract) {
+  generateContractCode(contract, gasLimit) {
     let abi = JSON.stringify(contract.abiDefinition);
 
     let block = "";
-    block += Templates.vanilla_contract({className: contract.className, abi: abi, contract: contract});
+    block += Templates.vanilla_contract({className: contract.className, abi: abi, contract: contract, gasLimit: gasLimit});
     return block;
   }
 
diff --git a/lib/contracts/code_templates/vanilla-contract.js.ejs b/lib/contracts/code_templates/vanilla-contract.js.ejs
index 684b6d71..9de12472 100644
--- a/lib/contracts/code_templates/vanilla-contract.js.ejs
+++ b/lib/contracts/code_templates/vanilla-contract.js.ejs
@@ -3,3 +3,7 @@
 <%- className %>.options.address = '<%- contract.deployedAddress %>';
 <%- className %>.address = '<%- contract.deployedAddress %>';
 <%- className %>.options.from = web3.eth.defaultAccount;
+if (<%- gasLimit %>) {
+  <%- className %>.options.gas = <%- gasLimit %>;
+  <%- className %>.options.gasLimit = <%- gasLimit %>;
+}
diff --git a/lib/contracts/contracts.js b/lib/contracts/contracts.js
index 9713050d..952fbdbb 100644
--- a/lib/contracts/contracts.js
+++ b/lib/contracts/contracts.js
@@ -14,6 +14,7 @@ class ContractsManager {
     this.logger = options.logger;
     this.plugins = options.plugins;
     this.contractDependencies = {};
+    this.gasLimit = options.gasLimit;
   }
 
   build(done) {
@@ -286,6 +287,9 @@ class ContractsManager {
       adjustedGas = Math.round(maxGas * 1.40);
       adjustedGas += 25000;
       contract.gas = adjustedGas;
+      if (this.gasLimit && this.gasLimit > contract.gas) {
+        contract.gas = this.gasLimit;
+      }
     }
   }
 }
diff --git a/lib/contracts/deploy.js b/lib/contracts/deploy.js
index 52e9f180..4638a49e 100644
--- a/lib/contracts/deploy.js
+++ b/lib/contracts/deploy.js
@@ -13,6 +13,7 @@ class Deploy {
     this.logger = options.logger;
     this.env = options.env;
     this.chainConfig = options.chainConfig;
+    this.gasLimit = options.gasLimit;
   }
 
   initTracker(cb) {
@@ -86,7 +87,7 @@ class Deploy {
 
     // always run contractCode so other functionality like 'afterDeploy' can also work
     let codeGenerator = new CodeGenerator({contractsManager: self.contractsManager});
-    let contractCode = codeGenerator.generateContractCode(contract);
+    let contractCode = codeGenerator.generateContractCode(contract, self.gasLimit);
     RunCode.doEval(contractCode, self.web3);
 
     return callback();
@@ -106,13 +107,13 @@ class Deploy {
 
       // always run contractCode so other functionality like 'afterDeploy' can also work
       let codeGenerator = new CodeGenerator({contractsManager: self.contractsManager});
-      let contractCode = codeGenerator.generateContractCode(contract);
+      let contractCode = codeGenerator.generateContractCode(contract, self.gasLimit);
       RunCode.doEval(contractCode, self.web3);
 
       if (contract.onDeploy !== undefined) {
         self.logger.info('executing onDeploy commands');
 
-        let contractCode = codeGenerator.generateContractCode(contract);
+        let contractCode = codeGenerator.generateContractCode(contract, self.gasLimit);
         RunCode.doEval(contractCode, self.web3);
 
         let withErrors = false;
@@ -241,6 +242,8 @@ class Deploy {
           return callback(null, receipt.contractAddress);
         }
         self.logger.contractsState(self.contractsManager.contractsState());
+      }).on('error', function(error) {
+        return callback(new Error("error deploying =" + contract.className + "= due to error: " + error.message));
       });
     });
   }
diff --git a/lib/contracts/deploy_manager.js b/lib/contracts/deploy_manager.js
index 0796006f..91c8b125 100644
--- a/lib/contracts/deploy_manager.js
+++ b/lib/contracts/deploy_manager.js
@@ -14,6 +14,8 @@ class DeployManager {
     this.plugins = options.plugins;
     this.web3 = options.web3;
     this.chainConfig = (options.trackContracts !== false) ? this.config.chainTracker : false;
+    this.gasLimit = false;
+    this.fatalErrors = false;
   }
 
   deployContracts(done) {
@@ -31,7 +33,8 @@ class DeployManager {
           contractFiles: self.config.contractsFiles,
           contractsConfig: self.config.contractsConfig,
           logger: self.logger,
-          plugins: self.plugins
+          plugins: self.plugins,
+          gasLimit: self.gasLimit
         });
         contractsManager.build(callback);
       },
@@ -73,7 +76,8 @@ class DeployManager {
           contractsManager: contractsManager,
           logger: self.logger,
           chainConfig: self.chainConfig,
-          env: self.config.env
+          env: self.config.env,
+          gasLimit: self.gasLimit
         });
 
         deploy.initTracker(function() {
@@ -81,6 +85,9 @@ class DeployManager {
             if (!err) {
               self.events.emit('contractsDeployed', contractsManager);
             }
+            if (err && self.fatalErrors) {
+              return callback(err);
+            }
             callback(null, contractsManager, web3);
           });
         });
diff --git a/lib/core/test.js b/lib/core/test.js
index 1bba7882..3ff9bc76 100644
--- a/lib/core/test.js
+++ b/lib/core/test.js
@@ -73,17 +73,17 @@ Test.prototype.deployAll = function(contractsConfig, cb) {
           });
         });
 
+        self.engine.deployManager.gasLimit = 6000000;
+        self.engine.deployManager.fatalErrors = true;
         self.engine.deployManager.deployContracts(function(err, _result) {
-          console.log("deployed contracts");
           if (err) {
-            console.log(err);
             callback(err);
           }
         });
       }
   ], function(err, result) {
     if (err) {
-      console.log("got error");
+      console.log('terminating due to error');
       process.exit();
     }
     // this should be part of the waterfall and not just something done at the
diff --git a/test_app/app/contracts/simple_storage.sol b/test_app/app/contracts/simple_storage.sol
index 58c90a35..dbec6e45 100644
--- a/test_app/app/contracts/simple_storage.sol
+++ b/test_app/app/contracts/simple_storage.sol
@@ -13,6 +13,9 @@ contract SimpleStorage is Ownable {
 
   function set(uint x) public {
     storedData = x;
+    for(uint i = 0; i < 1000; i++) {
+      storedData += i;
+    }
   }
 
   function set2(uint x, uint unusedGiveWarning) public onlyOwner {
diff --git a/test_app/test/simple_storage_spec.js b/test_app/test/simple_storage_spec.js
index 3c123c0c..9459cfa4 100644
--- a/test_app/test/simple_storage_spec.js
+++ b/test_app/test/simple_storage_spec.js
@@ -34,7 +34,7 @@ contract("SimpleStorage", function() {
   it("set storage value", function(done) {
     SimpleStorage.methods.set(150).send().then(function() {
       SimpleStorage.methods.get().call().then(function(result) {
-        assert.equal(result, 150);
+        assert.equal(result, 499650);
         done();
       });
     });