diff --git a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/Builder.java b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/Builder.java
index 231e67c22b1..a1a2a8cd427 100644
--- a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/Builder.java
+++ b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/Builder.java
@@ -2065,12 +2065,20 @@ public class Builder extends BuildObject implements IBuilder, IMatchKeyProvider
 			else if(!cfg.supportsBuild(false))
 				return true;
 		}
+		
+		Boolean attr = getManagedBuildOnAttribute();
+		if(attr != null)
+			return attr.booleanValue();
+		return true;
+	}
+	
+	public Boolean getManagedBuildOnAttribute(){
 		if(managedBuildOn == null){
 			if(superClass != null)
-				return superClass.isManagedBuildOn();
-			return true;
+				return ((Builder)superClass).getManagedBuildOnAttribute();
+			return null;
 		}
-		return managedBuildOn.booleanValue();
+		return managedBuildOn;
 	}
 
 	public void setManagedBuildOn(boolean on) throws CoreException {
diff --git a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/BuilderFactory.java b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/BuilderFactory.java
index f31d2fc5391..1f87a644260 100644
--- a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/BuilderFactory.java
+++ b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/BuilderFactory.java
@@ -278,9 +278,17 @@ public class BuilderFactory {
 			args.put(IBuilder.ID, ManagedBuildManager.calculateChildId(cfg.getId(), null));
 		MapStorageElement el = new BuildArgsStorageElement(args, null);
 		Builder builder = new Builder(tCh, el, ManagedBuildManager.getVersion().toString());
+		IBuilder cfgBuilder = cfg.getEditableBuilder();
 		if(builder.getBuildPathAttribute() == null){
 			//set the build path from the cfg settings
-			builder.setBuildPath(cfg.getEditableBuilder().getBuildPath());
+			builder.setBuildPath(cfgBuilder.getBuildPath());
+		}
+		if(builder.getManagedBuildOnAttribute() == null){
+			try {
+				builder.setManagedBuildOn(cfgBuilder.isManagedBuildOn());
+			} catch (CoreException e) {
+				ManagedBuilderCorePlugin.log(e);
+			}
 		}
 		return builder;
 	}