diff --git a/build/alicloud/TF_VERSION b/build/alicloud/TF_VERSION
index ecf56ca4..1282fff5 100644
--- a/build/alicloud/TF_VERSION
+++ b/build/alicloud/TF_VERSION
@@ -1 +1 @@
-0.14.11
+0.15.5
diff --git a/build/all/TF_VERSION b/build/all/TF_VERSION
index ecf56ca4..1282fff5 100644
--- a/build/all/TF_VERSION
+++ b/build/all/TF_VERSION
@@ -1 +1 @@
-0.14.11
+0.15.5
diff --git a/build/aws/TF_VERSION b/build/aws/TF_VERSION
index ecf56ca4..1282fff5 100644
--- a/build/aws/TF_VERSION
+++ b/build/aws/TF_VERSION
@@ -1 +1 @@
-0.14.11
+0.15.5
diff --git a/build/azure/TF_VERSION b/build/azure/TF_VERSION
index ecf56ca4..1282fff5 100644
--- a/build/azure/TF_VERSION
+++ b/build/azure/TF_VERSION
@@ -1 +1 @@
-0.14.11
+0.15.5
diff --git a/build/equinixmetal/TF_VERSION b/build/equinixmetal/TF_VERSION
index ecf56ca4..1282fff5 100644
--- a/build/equinixmetal/TF_VERSION
+++ b/build/equinixmetal/TF_VERSION
@@ -1 +1 @@
-0.14.11
+0.15.5
diff --git a/build/gcp/TF_VERSION b/build/gcp/TF_VERSION
index ecf56ca4..1282fff5 100644
--- a/build/gcp/TF_VERSION
+++ b/build/gcp/TF_VERSION
@@ -1 +1 @@
-0.14.11
+0.15.5
diff --git a/build/openstack/TF_VERSION b/build/openstack/TF_VERSION
index ecf56ca4..1282fff5 100644
--- a/build/openstack/TF_VERSION
+++ b/build/openstack/TF_VERSION
@@ -1 +1 @@
-0.14.11
+0.15.5
diff --git a/build/slim/TF_VERSION b/build/slim/TF_VERSION
index ecf56ca4..1282fff5 100644
--- a/build/slim/TF_VERSION
+++ b/build/slim/TF_VERSION
@@ -1 +1 @@
-0.14.11
+0.15.5
diff --git a/pkg/terraformer/terraformer.go b/pkg/terraformer/terraformer.go
index ccf6d021..39781504 100644
--- a/pkg/terraformer/terraformer.go
+++ b/pkg/terraformer/terraformer.go
@@ -237,6 +237,7 @@ func (t *Terraformer) executeTerraform(ctx context.Context, command Command, par
 	if command == StateReplaceProvider {
 		args = append(args, strings.Split(string(command), " ")...)
 	} else {
+		args = append(args, "-chdir="+t.paths.ConfigDir)
 		args = append(args, string(command))
 	}
 
@@ -258,11 +259,9 @@ func (t *Terraformer) executeTerraform(ctx context.Context, command Command, par
 
 	if command == StateReplaceProvider {
 		args = append(args, params...)
-	} else {
-		args = append(args, t.paths.ConfigDir)
 	}
 
-	log.Info("executing terraform", "command", command, "args", strings.Join(args[1:], " "))
+	log.Info("executing terraform", "command", command, "args", strings.Join(args, " "))
 	tfCmd := exec.Command(TerraformBinary, args...)
 
 	logBuffer := &bytes.Buffer{}
diff --git a/pkg/terraformer/terraformer_test.go b/pkg/terraformer/terraformer_test.go
index 9345d744..c4daa99c 100644
--- a/pkg/terraformer/terraformer_test.go
+++ b/pkg/terraformer/terraformer_test.go
@@ -160,8 +160,8 @@ var _ = Describe("Terraformer", func() {
 			It("should run Apply successfully", func() {
 				Expect(tf.Run(terraformer.Apply)).To(Succeed())
 				Eventually(logBuffer).Should(gbytes.Say("some terraform output"))
-				Eventually(logBuffer).Should(gbytes.Say("args: init"))
-				Eventually(logBuffer).Should(gbytes.Say("args: apply"))
+				Eventually(logBuffer).Should(gbytes.Say("init"))
+				Eventually(logBuffer).Should(gbytes.Say("apply"))
 				Eventually(logBuffer).Should(gbytes.Say("terraform process finished successfully"))
 				testObjs.Refresh()
 				Expect(testObjs.ConfigurationConfigMap.Finalizers).To(ContainElement(terraformer.TerraformerFinalizer))
@@ -172,8 +172,8 @@ var _ = Describe("Terraformer", func() {
 			It("should run Destroy successfully", func() {
 				Expect(tf.Run(terraformer.Destroy)).To(Succeed())
 				Eventually(logBuffer).Should(gbytes.Say("some terraform output"))
-				Eventually(logBuffer).Should(gbytes.Say("args: init"))
-				Eventually(logBuffer).Should(gbytes.Say("args: destroy"))
+				Eventually(logBuffer).Should(gbytes.Say("init"))
+				Eventually(logBuffer).Should(gbytes.Say("destroy"))
 				Eventually(logBuffer).Should(gbytes.Say("terraform process finished successfully"))
 				testObjs.Refresh()
 				Expect(testObjs.ConfigurationConfigMap.Finalizers).ToNot(ContainElement(terraformer.TerraformerFinalizer))
@@ -192,9 +192,9 @@ var _ = Describe("Terraformer", func() {
 			It("should run Validate successfully", func() {
 				Expect(tf.Run(terraformer.Validate)).To(Succeed())
 				Eventually(logBuffer).Should(gbytes.Say("some terraform output"))
-				Eventually(logBuffer).Should(gbytes.Say("args: init"))
-				Eventually(logBuffer).Should(gbytes.Say("args: validate"))
-				Eventually(logBuffer).Should(gbytes.Say("args: plan"))
+				Eventually(logBuffer).Should(gbytes.Say("init"))
+				Eventually(logBuffer).Should(gbytes.Say("validate"))
+				Eventually(logBuffer).Should(gbytes.Say("plan"))
 				Eventually(logBuffer).Should(gbytes.Say("terraform process finished successfully"))
 				Expect(paths.TerminationMessagePath).To(testutils.BeEmptyFile())
 			})
@@ -250,7 +250,7 @@ var _ = Describe("Terraformer", func() {
 					Eventually(logBuffer).Should(gbytes.Say("successfully stored terraform state"))
 
 					Expect(paths.TerminationMessagePath).To(testutils.BeFileWithContents(And(
-						ContainSubstring("args: init"),
+						ContainSubstring("init"),
 						ContainSubstring("some terraform error"),
 					)), "termination log should contain all terraform logs")
 				})
@@ -270,7 +270,7 @@ var _ = Describe("Terraformer", func() {
 				Eventually(logBuffer).Should(gbytes.Say("successfully stored terraform state"))
 
 				Expect(paths.TerminationMessagePath).To(testutils.BeFileWithContents(And(
-					ContainSubstring("args: apply"),
+					ContainSubstring("apply"),
 					ContainSubstring("doing some long running IaaS ops"),
 					ContainSubstring("some terraform error"),
 				)), "termination log should contain all terraform logs")
@@ -289,7 +289,7 @@ var _ = Describe("Terraformer", func() {
 				Eventually(logBuffer).Should(gbytes.Say("successfully stored terraform state"))
 
 				Expect(paths.TerminationMessagePath).To(testutils.BeFileWithContents(And(
-					ContainSubstring("args: destroy"),
+					ContainSubstring("destroy"),
 					ContainSubstring("doing some long running IaaS ops"),
 					ContainSubstring("some terraform error"),
 				)), "termination log should contain all terraform logs")
@@ -308,7 +308,7 @@ var _ = Describe("Terraformer", func() {
 				Eventually(logBuffer).Should(gbytes.Say("successfully stored terraform state"))
 
 				Expect(paths.TerminationMessagePath).To(testutils.BeFileWithContents(And(
-					ContainSubstring("args: validate"),
+					ContainSubstring("validate"),
 					ContainSubstring("doing some long running IaaS ops"),
 					ContainSubstring("some terraform error"),
 				)), "termination log should contain all terraform logs")
@@ -336,8 +336,8 @@ var _ = Describe("Terraformer", func() {
 					Eventually(logBuffer).Should(gbytes.Say("successfully stored terraform state"))
 
 					Expect(paths.TerminationMessagePath).To(testutils.BeFileWithContents(And(
-						Not(ContainSubstring("args: validate")),
-						ContainSubstring("args: plan"),
+						Not(ContainSubstring("validate")),
+						ContainSubstring("plan"),
 						ContainSubstring("doing some long running IaaS ops"),
 						ContainSubstring("some terraform error"),
 					)), "termination log should contain all terraform logs")
@@ -389,7 +389,7 @@ var _ = Describe("Terraformer", func() {
 				It("should run Apply successfully and execute the state replace-provider command", func() {
 					Expect(tf.Run(terraformer.Apply)).To(Succeed())
 					Eventually(logBuffer).Should(gbytes.Say("some terraform output"))
-					Eventually(logBuffer).Should(gbytes.Say("args: state replace-provider"))
+					Eventually(logBuffer).Should(gbytes.Say("state replace-provider"))
 					Eventually(logBuffer).Should(gbytes.Say("terraform process finished successfully"))
 					testObjs.Refresh()
 					Expect(paths.TerminationMessagePath).To(testutils.BeEmptyFile())
@@ -397,7 +397,7 @@ var _ = Describe("Terraformer", func() {
 				It("should run Destroy successfully and execute the state replace-provider command", func() {
 					Expect(tf.Run(terraformer.Destroy)).To(Succeed())
 					Eventually(logBuffer).Should(gbytes.Say("some terraform output"))
-					Eventually(logBuffer).Should(gbytes.Say("args: state replace-provider"))
+					Eventually(logBuffer).Should(gbytes.Say("state replace-provider"))
 					Eventually(logBuffer).Should(gbytes.Say("terraform process finished successfully"))
 					testObjs.Refresh()
 					Expect(paths.TerminationMessagePath).To(testutils.BeEmptyFile())
@@ -405,7 +405,7 @@ var _ = Describe("Terraformer", func() {
 				It("should run Validate successfully and execute the state replace-provider command", func() {
 					Expect(tf.Run(terraformer.Validate)).To(Succeed())
 					Eventually(logBuffer).Should(gbytes.Say("some terraform output"))
-					Eventually(logBuffer).Should(gbytes.Say("args: state replace-provider"))
+					Eventually(logBuffer).Should(gbytes.Say("state replace-provider"))
 					Eventually(logBuffer).Should(gbytes.Say("terraform process finished successfully"))
 					Expect(paths.TerminationMessagePath).To(testutils.BeEmptyFile())
 				})
@@ -448,7 +448,7 @@ var _ = Describe("Terraformer", func() {
 						Eventually(logBuffer).Should(gbytes.Say("successfully stored terraform state"))
 
 						Expect(paths.TerminationMessagePath).To(testutils.BeFileWithContents(And(
-							ContainSubstring("args: state replace-provider"),
+							ContainSubstring("state replace-provider"),
 							ContainSubstring("some terraform error"),
 						)), "termination log should contain all terraform logs")
 					})
diff --git a/test/e2e/binary/binary_test.go b/test/e2e/binary/binary_test.go
index 3c10e2a6..74d9ccfe 100644
--- a/test/e2e/binary/binary_test.go
+++ b/test/e2e/binary/binary_test.go
@@ -430,7 +430,7 @@ var _ = Describe("terraformer", func() {
 				It("should return exit code from terraform init", func() {
 					runExitCodeTest("apply", 12)
 					Expect(paths.TerminationMessagePath).To(testutils.BeFileWithContents(And(
-						ContainSubstring("args: init"),
+						ContainSubstring("init"),
 						ContainSubstring("some terraform error"),
 					)), "termination log should contain all terraform logs")
 				})
@@ -449,7 +449,7 @@ var _ = Describe("terraformer", func() {
 				It("should return exit code from terraform apply", func() {
 					runExitCodeTest("apply", 42)
 					Expect(paths.TerminationMessagePath).To(testutils.BeFileWithContents(And(
-						ContainSubstring("args: apply"),
+						ContainSubstring("apply"),
 						ContainSubstring("doing some long running IaaS ops"),
 						ContainSubstring("some terraform error"),
 					)), "termination log should contain all terraform logs")
@@ -457,7 +457,7 @@ var _ = Describe("terraformer", func() {
 				It("should return exit code from terraform destroy", func() {
 					runExitCodeTest("destroy", 43)
 					Expect(paths.TerminationMessagePath).To(testutils.BeFileWithContents(And(
-						ContainSubstring("args: destroy"),
+						ContainSubstring("destroy"),
 						ContainSubstring("doing some long running IaaS ops"),
 						ContainSubstring("some terraform error"),
 					)), "termination log should contain all terraform logs")
@@ -465,7 +465,7 @@ var _ = Describe("terraformer", func() {
 				It("should return exit code from terraform validate", func() {
 					runExitCodeTest("validate", 44)
 					Expect(paths.TerminationMessagePath).To(testutils.BeFileWithContents(And(
-						ContainSubstring("args: validate"),
+						ContainSubstring("validate"),
 						ContainSubstring("doing some long running IaaS ops"),
 						ContainSubstring("some terraform error"),
 					)), "termination log should contain all terraform logs")
@@ -482,8 +482,8 @@ var _ = Describe("terraformer", func() {
 					It("should return exit code from terraform plan", func() {
 						runExitCodeTest("validate", 45)
 						Expect(paths.TerminationMessagePath).To(testutils.BeFileWithContents(And(
-							Not(ContainSubstring("args: validate")),
-							ContainSubstring("args: plan"),
+							Not(ContainSubstring("validate")),
+							ContainSubstring("plan"),
 							ContainSubstring("doing some long running IaaS ops"),
 							ContainSubstring("some terraform error"),
 						)), "termination log should contain all terraform logs")
diff --git a/test/utils/fake-terraform/main.go b/test/utils/fake-terraform/main.go
index a23f6af9..dbcc8144 100644
--- a/test/utils/fake-terraform/main.go
+++ b/test/utils/fake-terraform/main.go
@@ -62,9 +62,12 @@ func main() {
 }
 
 func getCommand(args []string) string {
-	if len(args) < 1 {
+	if len(args) < 2 {
 		return ""
 	}
+	if strings.HasPrefix(args[0], "-chdir=") {
+		return args[1]
+	}
 	return args[0]
 }
 
diff --git a/test/utils/objects.go b/test/utils/objects.go
index 49d98a84..0d892e1f 100644
--- a/test/utils/objects.go
+++ b/test/utils/objects.go
@@ -36,7 +36,7 @@ func PrepareTestObjects(ctx context.Context, c client.Client, namespacePrefix, t
 		namespacePrefix = "tf-test-"
 	}
 	if terraformVersion == "" {
-		terraformVersion = "0.14.11"
+		terraformVersion = "0.15.5"
 	}
 
 	// create test namespace