diff --git a/Gopkg.lock b/Gopkg.lock
index eaf60c4..59012b9 100644
--- a/Gopkg.lock
+++ b/Gopkg.lock
@@ -847,7 +847,7 @@
   version = "v0.1.2"
 
 [[projects]]
-  digest = "1:4b9e106ec4da06d6d5787a5d5ac1c2f08a38fc5aff287375b98b95dbd42e7181"
+  digest = "1:ddebdab9c149e675ed4b4a054ede657d228854bc7c95b33caa08c11c07863004"
   name = "sigs.k8s.io/controller-tools"
   packages = [
     "cmd/controller-gen",
@@ -859,7 +859,7 @@
     "pkg/util",
   ]
   pruneopts = "T"
-  revision = "fe397b1c87ef4524abf55a7de80f223194146b5e"
+  revision = "41f36afa0662ee408687cfe70c13420ff2523b74"
   source = "https://github.com/ichekrygin/controller-tools.git"
 
 [[projects]]
diff --git a/Gopkg.toml b/Gopkg.toml
index 48ffe57..cb8c6b3 100644
--- a/Gopkg.toml
+++ b/Gopkg.toml
@@ -30,7 +30,7 @@ required = [
 [[override]]
   name="sigs.k8s.io/controller-tools"
   source = "https://github.com/ichekrygin/controller-tools.git"
-  revision = "fe397b1c87ef4524abf55a7de80f223194146b5e"
+  revision = "41f36afa0662ee408687cfe70c13420ff2523b74"
 
 # For dependency below: Refer to issue https://github.com/golang/dep/issues/1799
 [[override]]
diff --git a/Jenkinsfile b/Jenkinsfile
index 5405ff1..dfc7b0c 100644
--- a/Jenkinsfile
+++ b/Jenkinsfile
@@ -58,7 +58,7 @@ pipeline {
         always {
             script {
                 sh 'make -j\$(nproc) clean'
-                sh 'make -j$(nproc) prune PRUNE_HOURS=48 PRUNE_KEEP=48'
+                sh 'make -j\$(nproc) prune PRUNE_HOURS=48 PRUNE_KEEP=48'
                 sh 'docker images'
             }
         }
diff --git a/Makefile b/Makefile
index e42ce89..c105d9b 100644
--- a/Makefile
+++ b/Makefile
@@ -53,4 +53,4 @@ include build/makelib/image.mk
 
 # Generate manifests e.g. CRD, RBAC etc.
 manifests:
-	go run vendor/sigs.k8s.io/controller-tools/cmd/controller-gen/main.go crd --output-dir cluster/charts/conductor/crds
+	go run vendor/sigs.k8s.io/controller-tools/cmd/controller-gen/main.go crd --output-dir cluster/charts/conductor/crds --nested
diff --git a/pkg/test/envtest.go b/pkg/test/envtest.go
index f27c73c..52dd62b 100644
--- a/pkg/test/envtest.go
+++ b/pkg/test/envtest.go
@@ -39,10 +39,11 @@ func NewTestEnv(namespace string, crds ...string) *TestEnv {
 		UseExistingCluster: UseExistingCluster(),
 	}
 	if !t.UseExistingCluster {
-		if err := CheckCRDFiles(crds); err != nil {
+		if crds, err := CheckCRDFiles(crds); err != nil {
 			log.Panic(err)
+		} else {
+			t.CRDDirectoryPaths = crds
 		}
-		t.CRDDirectoryPaths = crds
 	}
 	if len(namespace) == 0 {
 		namespace = "default"
@@ -105,13 +106,46 @@ func UseExistingCluster() bool {
 }
 
 // CheckCRDFiles - validates that all crds files are found.
-func CheckCRDFiles(crds []string) error {
+func CheckCRDFiles(crds []string) ([]string, error) {
+	var rs []string
+
 	for _, path := range crds {
-		if _, err := os.Stat(path); os.IsNotExist(err) {
-			return err
+		_, err := os.Stat(path)
+		if os.IsNotExist(err) {
+			return nil, err
 		}
+		files, err := Expand(path)
+		if err != nil {
+			return nil, err
+		}
+		rs = append(rs, files...)
 	}
-	return nil
+	return rs, nil
+}
+
+// Expand recursively and returns list of all sub-directories (if any)
+func Expand(path string) ([]string, error) {
+	var rs []string
+
+	fi, err := os.Stat(path)
+	if os.IsNotExist(err) {
+		return nil, err
+	}
+	if fi.Mode().IsDir() {
+		files, err := filepath.Glob(filepath.Join(path, "*"))
+		if err != nil {
+			return nil, err
+		}
+		for _, f := range files {
+			exp, err := Expand(f)
+			if err != nil {
+				return nil, err
+			}
+			rs = append(rs, exp...)
+		}
+		rs = append(rs, path)
+	}
+	return rs, nil
 }
 
 // CRDs path to project crds location