diff --git a/manager/manager/manager.go b/manager/manager/manager.go
index 2cb4858a3..8fb2b4ec2 100644
--- a/manager/manager/manager.go
+++ b/manager/manager/manager.go
@@ -90,26 +90,23 @@ func (m *manager) GetManifest(deploymentName string, manifestName string) (*Mani
 // and stores the deployment in the repository. Returns the deployment.
 func (m *manager) CreateDeployment(t *Template) (*Deployment, error) {
 	log.Printf("Creating deployment: %s", t.Name)
-	et, err := m.expander.ExpandTemplate(*t)
+	_, err := m.repository.CreateDeployment(t.Name)
 	if err != nil {
-		log.Printf("Expansion failed %v", err)
+		log.Printf("CreateDeployment failed %v", err)
 		return nil, err
 	}
 
-	_, err = m.repository.CreateDeployment(t.Name)
+	manifest, err := createManifest(t)
 	if err != nil {
-		log.Printf("CreateDeployment failed %v", err)
+		log.Printf("Manifest creation failed: %v", err)
+		m.repository.SetDeploymentStatus(t.Name, FailedStatus)
 		return nil, err
 	}
 
-	manifest := NewManifest(t.Name, generateManifestName())
-	manifest.InputConfig = t
-	manifest.ExpandedConfig = et.Config
-	manifest.Layout = et.Layout
-
 	err = m.repository.AddManifest(t.Name, manifest)
 	if err != nil {
 		log.Printf("AddManifest failed %v", err)
+		m.repository.SetDeploymentStatus(t.Name, FailedStatus)
 		return nil, err
 	}
 
@@ -126,6 +123,22 @@ func (m *manager) CreateDeployment(t *Template) (*Deployment, error) {
 	return m.repository.GetValidDeployment(t.Name)
 }
 
+func (m *manager) createManifest(t *Template) (*Manifest, error) {
+	et, err := m.expander.ExpandTemplate(*t)
+	if err != nil {
+		log.Printf("Expansion failed %v", err)
+		return nil, err
+	}
+
+	return &Manifest{
+		Name:           generateManifestName(),
+		Deployment:     t.Name,
+		InputConfig:    t,
+		ExpandedConfig: et.Config,
+		Layout:         et.Layout,
+	}
+}
+
 func (m *manager) addTypeInstances(deploymentName string, manifestName string, layout *Layout) {
 	m.repository.ClearTypeInstances(deploymentName)
 
diff --git a/manager/manager/types.go b/manager/manager/types.go
index e9c95e728..e8e3fd478 100644
--- a/manager/manager/types.go
+++ b/manager/manager/types.go
@@ -81,11 +81,6 @@ func NewDeployment(name string, id int) *Deployment {
 		Manifests: make(map[string]*Manifest, 0)}
 }
 
-// NewManifest creates a new manifest.
-func NewManifest(deploymentName string, manifestName string) *Manifest {
-	return &Manifest{Deployment: deploymentName, Name: manifestName}
-}
-
 // DeploymentStatus is an enumeration type for the status of a deployment.
 type DeploymentStatus string