diff --git a/installer/server/terraform.go b/installer/server/terraform.go
index 5a5260e6b8..6e27cefa5f 100644
--- a/installer/server/terraform.go
+++ b/installer/server/terraform.go
@@ -5,8 +5,10 @@ import (
 	"fmt"
 	"io/ioutil"
 	"net/http"
+	"path/filepath"
 	"strconv"
 	"strings"
+	"time"
 
 	"golang.org/x/crypto/bcrypt"
 	"golang.org/x/net/context"
@@ -17,6 +19,7 @@ import (
 	"github.com/coreos/tectonic-installer/installer/server/ctxh"
 	"github.com/coreos/tectonic-installer/installer/server/defaults"
 	"github.com/coreos/tectonic-installer/installer/server/terraform"
+	"github.com/kardianos/osext"
 )
 
 func newAWSTerraformVars(c *TectonicAWSCluster) ([]asset.Asset, error) {
@@ -339,8 +342,20 @@ func terraformDestroyHandler(sessionProvider sessions.Store) ctxh.ContextHandler
 // newExecutorFromApplyHandlerInput creates a new Executor based on the given
 // TerraformApplyHandlerInput.
 func newExecutorFromApplyHandlerInput(input *TerraformApplyHandlerInput) (*terraform.Executor, *ctxh.AppError) {
+	// Construct the path where the Executor should run based on the the cluster
+	// name and current's binary path.
+	binaryPath, err := osext.ExecutableFolder()
+	if err != nil {
+		return nil, ctxh.NewAppError(err, fmt.Sprintf("Could not determine executable's folder: %v", err.Error()), http.StatusInternalServerError)
+	}
+	clusterName := input.Variables["tectonic_cluster_name"].(string)
+	if len(clusterName) == 0 {
+		return nil, ctxh.NewAppError(err, "Tectonic cluster name not provided", http.StatusBadRequest)
+	}
+	exPath := filepath.Join(binaryPath, "clusters", clusterName+time.Now().Format("_2006-01-02_15-04-05"))
+
 	// Create a new Executor.
-	ex, err := terraform.NewExecutor()
+	ex, err := terraform.NewExecutor(exPath)
 	if err != nil {
 		return nil, ctxh.NewAppError(err, fmt.Sprintf("Could not create TerraForm executor: %v", err.Error()), http.StatusInternalServerError)
 	}
@@ -411,7 +426,7 @@ func restoreExecutionFromSession(req *http.Request, sessionProvider sessions.Sto
 	if !ok {
 		return nil, nil, -1, ctxh.NewAppError(err, "Could not find terraform_id in session. Run terraform apply first.", http.StatusNotFound)
 	}
-	ex, err := terraform.NewExecutorFromPath(executionPath.(string))
+	ex, err := terraform.NewExecutor(executionPath.(string))
 	if err != nil {
 		return nil, nil, -1, ctxh.NewAppError(err, "could not create TerraForm executor", http.StatusInternalServerError)
 	}
diff --git a/installer/server/terraform/executor.go b/installer/server/terraform/executor.go
index 5b70789493..cf6d61b85d 100644
--- a/installer/server/terraform/executor.go
+++ b/installer/server/terraform/executor.go
@@ -80,32 +80,13 @@ type Executor struct {
 }
 
 // NewExecutor initializes a new Executor.
-func NewExecutor() (*Executor, error) {
-	// Create a temporary folder in which the new Executor can run.
-	executionPath, err := ioutil.TempDir(os.TempDir(), "tectonic")
-	if err != nil {
-		return nil, err
-	}
-
-	// Create an executor in that path.
-	ex, err := NewExecutorFromPath(executionPath)
-	if err != nil {
-		os.RemoveAll(executionPath)
-		return nil, err
-	}
-
-	return ex, err
-}
-
-// NewExecutorFromPath creates an Executor from an existing path.
-func NewExecutorFromPath(executionPath string) (*Executor, error) {
-	var err error
-
+func NewExecutor(executionPath string) (*Executor, error) {
 	ex := new(Executor)
 	ex.executionPath = executionPath
 
-	// Create the folder in which the logs will be stored, if not existing.
-	os.Mkdir(filepath.Join(ex.executionPath, logsFolderName), 0770)
+	// Create the folder in which the executor, and its logs will be stored,
+	// if not existing.
+	os.MkdirAll(filepath.Join(ex.executionPath, logsFolderName), 0770)
 
 	// Create a Executor CLI configuration file, that contains the list of
 	// vendored providers/provisioners.
diff --git a/installer/server/terraform/executor_test.go b/installer/server/terraform/executor_test.go
index ebf012b220..e36143a91b 100644
--- a/installer/server/terraform/executor_test.go
+++ b/installer/server/terraform/executor_test.go
@@ -52,8 +52,14 @@ func TestMain(m *testing.M) {
 // worked (State/Status), and then create a new executor at the path of the
 // existing one and verify the state is shared.
 func TestExecutorSimple(t *testing.T) {
+	tmpDir, err := ioutil.TempDir("", "tectonic")
+	if err != nil {
+		t.Logf("Failed to create temporary directory: %s", err)
+		t.FailNow()
+	}
+
 	// Create an executor.
-	ex, err := NewExecutor()
+	ex, err := NewExecutor(tmpDir)
 	if err == ErrBinaryNotFound {
 		t.Skip("TerraForm not found, skipping")
 		return
@@ -98,7 +104,7 @@ func TestExecutorSimple(t *testing.T) {
 	assert.NotZero(t, len(outputBytes))
 
 	// Creates a new executor at the same existing one.
-	ex2, err := NewExecutorFromPath(ex.WorkingDirectory())
+	ex2, err := NewExecutor(ex.WorkingDirectory())
 	assert.Nil(t, err)
 	assert.NotNil(t, ex2)
 
@@ -111,8 +117,14 @@ func TestExecutorSimple(t *testing.T) {
 // TestExecutorMissingVar executes TerraForm apply with missing variables and
 // ensures it failed.
 func TestExecutorMissingVar(t *testing.T) {
+	tmpDir, err := ioutil.TempDir("", "tectonic")
+	if err != nil {
+		t.Logf("Failed to create temporary directory: %s", err)
+		t.FailNow()
+	}
+
 	// Create an executor.
-	ex, err := NewExecutor()
+	ex, err := NewExecutor(tmpDir)
 	if err == ErrBinaryNotFound {
 		t.Skip("TerraForm not found, skipping")
 		return
@@ -135,7 +147,7 @@ func TestExecutorMissingVar(t *testing.T) {
 	// Wait for its termination.
 	select {
 	case <-done:
-	case <-time.After(1 * time.Second):
+	case <-time.After(10 * time.Second):
 		assert.FailNow(t, "TerraForm apply timed out")
 	}