diff --git a/doc/dist/lib/vmtest.html b/doc/dist/lib/vmtest.html
index dead263..689d057 100644
--- a/doc/dist/lib/vmtest.html
+++ b/doc/dist/lib/vmtest.html
@@ -61,15 +61,67 @@
 
         <span class="hljs-keyword">var</span> contractClass = that.web3.eth.contract(that.contract.abi);
 
-        that.deploy(<span class="hljs-function"><span class="hljs-keyword">function</span> (<span class="hljs-params">err, receipt</span>) </span>{
+        <span class="hljs-keyword">var</span> runTestOn = <span class="hljs-function"><span class="hljs-keyword">function</span> (<span class="hljs-params">contract</span>) </span>{
+            that.runInstanceTestByName(contract, that.tests[testIndex], cb);
+        };
+
+        <span class="hljs-keyword">var</span> setUpHandlerFor = <span class="hljs-function"><span class="hljs-keyword">function</span> (<span class="hljs-params">contract</span>) </span>{
+            <span class="hljs-keyword">return</span> <span class="hljs-function"><span class="hljs-keyword">function</span> (<span class="hljs-params">err, txHash</span>) </span>{
+                <span class="hljs-keyword">if</span> (err) {
+                    <span class="hljs-keyword">return</span> cb(err);
+                }
+
+                that.web3.eth.getTransactionReceipt(txHash, <span class="hljs-function"><span class="hljs-keyword">function</span>(<span class="hljs-params">err, receipt</span>) </span>{
+                    <span class="hljs-keyword">if</span>( receipt === <span class="hljs-literal">null</span> &amp;&amp; err === <span class="hljs-literal">null</span>) {
+                        err = <span class="hljs-string">"setUp failed - exception thrown"</span>;
+                    }
+
+                    <span class="hljs-keyword">if</span> (err) {
+                        <span class="hljs-keyword">var</span> testResult = {
+                            title: <span class="hljs-string">"setUp failed"</span>,
+                            message: err,
+                            logs: [],
+                            failed: <span class="hljs-literal">true</span>
+                        };
+                        cb(err, testResult);
+                        <span class="hljs-keyword">return</span>;
+                    }
+
+                    runTestOn(contract);
+                });
+            };
+        };
+
+        <span class="hljs-keyword">var</span> getCodeHandlerFor = <span class="hljs-function"><span class="hljs-keyword">function</span>(<span class="hljs-params">address</span>) </span>{
+            <span class="hljs-keyword">return</span> <span class="hljs-function"><span class="hljs-keyword">function</span> (<span class="hljs-params">err, code</span>) </span>{
+                <span class="hljs-keyword">if</span> (err) {
+                    <span class="hljs-keyword">return</span> cb(err);
+                }
+
+                <span class="hljs-keyword">if</span> (code === <span class="hljs-string">'0x'</span>) {
+                    <span class="hljs-keyword">return</span> cb(<span class="hljs-string">"Contract failed to deploy."</span>);
+                }
+
+                <span class="hljs-keyword">var</span> contract = contractClass.at(address);
+
+                <span class="hljs-keyword">if</span>( contract.setUp !== <span class="hljs-literal">undefined</span> ) {
+                    contract.setUp(setUpHandlerFor(contract));
+                }
+                <span class="hljs-keyword">else</span> {
+                    runTestOn(contract);
+                }
+            };
+        };
+
+        <span class="hljs-keyword">var</span> deployHandler = <span class="hljs-function"><span class="hljs-keyword">function</span> (<span class="hljs-params">err, receipt</span>) </span>{
             <span class="hljs-keyword">if</span> (err) {
                 <span class="hljs-keyword">return</span> cb(err);
             }
+            that.web3.eth.getCode(receipt.contractAddress,
+                                  getCodeHandlerFor(receipt.contractAddress));
+        };
 
-            that.runInstanceTestByName(
-                contractClass.at(receipt.contractAddress),
-                that.tests[testIndex], cb);
-        });
+        that.deploy(deployHandler);
     }
 
     testCount() {
@@ -111,7 +163,7 @@
                     <span class="hljs-keyword">if</span>( receipt == <span class="hljs-literal">null</span> ) {
                         failed = <span class="hljs-literal">true</span>;
                         logs = [];
-                        message = <span class="hljs-string">"Transaction failed - no logs available."</span>;
+                        message = <span class="hljs-string">"test failed - exception thrown"</span>;
                     } <span class="hljs-keyword">else</span> {
                         failed = failed || <span class="hljs-built_in">Boolean</span>(err);
                         message = err ? err : (failed ? <span class="hljs-string">"Failed!"</span> : <span class="hljs-string">"Passed!"</span>);
@@ -133,12 +185,6 @@
             });
         };
 
-        <span class="hljs-keyword">if</span>( contractInstance.setUp !== <span class="hljs-literal">undefined</span> ) {
-            contractInstance.setUp(<span class="hljs-function"><span class="hljs-keyword">function</span> (<span class="hljs-params"></span>) </span>{}); <span class="hljs-comment">// No-op function is</span></div></div></div><div class="segment"><div class="comments "><div class="wrapper"><p>a workaround for a
-bug that needs to
-be properly handled.
-(TODO)</p></div></div><div class="code"><div class="wrapper">        }
-
         contractInstance[testFunction]({
             from: that.web3.eth.defaultAccount,
             gas: DEFAULT_GAS
diff --git a/lib/streams/test.js b/lib/streams/test.js
index 75aa04c..870edd6 100644
--- a/lib/streams/test.js
+++ b/lib/streams/test.js
@@ -20,52 +20,53 @@ module.exports = function (opts) {
     return through.obj(function (file, enc, cb) {
         var that = this;
         var classes = JSON.parse(String(file.contents));
-        
+
         // Skip if Test contract isn't found
         if( !("Test" in classes) ) return cb()
-        
+
         // Load the Test contract
         try {
           var testContract = new Contract(classes['Test']);
         } catch (err) {
           return cb(err);
         }
-        
+
+        var web3;
+        if (opts.web3 == 'internal') {
+            web3 = Web3Factory.EVM();
+        } else {
+            try {
+                web3 = Web3Factory.JSONRPC(opts.web3);
+            } catch (e) {
+                this.push(new File({
+                    path: "JSON-RPC Connection/Can't connect.stderr",
+                    contents: new Buffer(String(e))
+                }));
+                cb();
+                return;
+            }
+        }
+
         for (var className in classes) {
-            
+
             // Filter classNames if a filter is present if a filter is present
             if ( opts.nameFilter && !opts.nameFilter.test( className ) ) {
               continue;
             }
-            
+
             try {
                 var contract = new Contract(classes[className]);
             } catch(err) {
                 return cb(err);
             }
-            
+
             // way to determine if the class is a test,
             // iff it has implemented the Test interface
-            if (_.intersection( contract.signatures, testContract.signatures ).length != testContract.signatures.length) {
+            if (_.intersection(contract.signatures, testContract.signatures)
+                    .length != testContract.signatures.length) {
                 continue;
             }
 
-            var web3;
-            if (opts.web3 == 'internal') {
-                web3 = Web3Factory.EVM();
-            } else {
-                try {
-                    web3 = Web3Factory.JSONRPC(opts.web3);
-                } catch (e) {
-                    this.push(new File({
-                        path: "JSON-RPC Connection/Can't connect.stderr",
-                        contents: new Buffer(String(e))
-                    }));
-                    cb();
-                    return;
-                }
-            }
-
             // **TODO**: Run all tests in chain forks at the same height.
             var remaining = -1;
             var logTranslator = new LogTranslator(contract.abi);
@@ -75,7 +76,7 @@ module.exports = function (opts) {
             var errored = false;
 
             var logTestResult = function(err, result) {
-                if (errored) return;
+                if (errored || that.isPaused()) return;
 
                 if (err) {
                     that.push(new File({
@@ -118,6 +119,7 @@ module.exports = function (opts) {
                     contents: new Buffer(output)
                 });
                 that.push(file);
+
                 remaining = remaining - 1;
                 errored = result.failed;
             };
diff --git a/lib/vmtest.js b/lib/vmtest.js
index 3c1ba80..76714d4 100644
--- a/lib/vmtest.js
+++ b/lib/vmtest.js
@@ -70,15 +70,67 @@ module.exports = class VMTest {
 
         var contractClass = that.web3.eth.contract(that.contract.abi);
 
-        that.deploy(function (err, receipt) {
+        var runTestOn = function (contract) {
+            that.runInstanceTestByName(contract, that.tests[testIndex], cb);
+        };
+
+        var setUpHandlerFor = function (contract) {
+            return function (err, txHash) {
+                if (err) {
+                    return cb(err);
+                }
+
+                that.web3.eth.getTransactionReceipt(txHash, function(err, receipt) {
+                    if( receipt === null && err === null) {
+                        err = "setUp failed - exception thrown";
+                    }
+
+                    if (err) {
+                        var testResult = {
+                            title: "setUp failed",
+                            message: err,
+                            logs: [],
+                            failed: true
+                        };
+                        cb(err, testResult);
+                        return;
+                    }
+
+                    runTestOn(contract);
+                });
+            };
+        };
+
+        var getCodeHandlerFor = function(address) {
+            return function (err, code) {
+                if (err) {
+                    return cb(err);
+                }
+
+                if (code === '0x') {
+                    return cb("Contract failed to deploy.");
+                }
+
+                var contract = contractClass.at(address);
+
+                if( contract.setUp !== undefined ) {
+                    contract.setUp(setUpHandlerFor(contract));
+                }
+                else {
+                    runTestOn(contract);
+                }
+            };
+        };
+
+        var deployHandler = function (err, receipt) {
             if (err) {
                 return cb(err);
             }
+            that.web3.eth.getCode(receipt.contractAddress,
+                                  getCodeHandlerFor(receipt.contractAddress));
+        };
 
-            that.runInstanceTestByName(
-                contractClass.at(receipt.contractAddress),
-                that.tests[testIndex], cb);
-        });
+        that.deploy(deployHandler);
     }
 
     testCount() {
@@ -126,7 +178,7 @@ module.exports = class VMTest {
                     if( receipt == null ) {
                         failed = true;
                         logs = [];
-                        message = "Transaction failed - no logs available.";
+                        message = "test failed - exception thrown";
                     } else {
                         failed = failed || Boolean(err);
                         message = err ? err : (failed ? "Failed!" : "Passed!");
@@ -148,14 +200,6 @@ module.exports = class VMTest {
             });
         };
 
-        if( contractInstance.setUp !== undefined ) {
-            contractInstance.setUp(function () {}); // No-op function is
-                                            // a workaround for a
-                                            // bug that needs to
-                                            // be properly handled.
-                                            // (TODO)
-        }
-
         contractInstance[testFunction]({
             from: that.web3.eth.defaultAccount,
             gas: DEFAULT_GAS