diff --git a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/GeneratedMakefileBuilder.java b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/GeneratedMakefileBuilder.java
index e8a59f0f935..4512ab269ab 100644
--- a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/GeneratedMakefileBuilder.java
+++ b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/GeneratedMakefileBuilder.java
@@ -198,16 +198,8 @@ public class GeneratedMakefileBuilder extends ACBuilder {
 			}
 		}
 		
-		// Scrub the build info of all the projects participating in the build
+		// Scrub the build info the project
 		info.setRebuildState(false);
-		for (int i = 0; i < referencedProjects.length; i++) {
-			IProject project = referencedProjects[i];
-			IManagedBuildInfo depInfo = ManagedBuildManager.getBuildInfo(project);
-			// May not be a managed project 
-			if (depInfo != null) {
-				depInfo.setRebuildState(false);
-			}
-		} 
 		
 		// Ask build mechanism to compute deltas for project dependencies next time
 		return referencedProjects;
diff --git a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/makegen/gnu/GnuMakefileGenerator.java b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/makegen/gnu/GnuMakefileGenerator.java
index c6a2c53552c..e3fe65e59c9 100644
--- a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/makegen/gnu/GnuMakefileGenerator.java
+++ b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/makegen/gnu/GnuMakefileGenerator.java
@@ -574,7 +574,7 @@ public class GnuMakefileGenerator implements IManagedBuilderMakefileGenerator {
 
 		/*
 		 * Write out the target rule as:
-		 * targ_<prefix><target>.<extension>: $(OBJS)
+		 * targ_<prefix><target>.<extension>: $(OBJS) <refd_project_1 ... refd_project_n>
 		 * 		@echo 'Building target: $@'
 		 * 		$(BUILD_TOOL) $(FLAGS) $(OUTPUT_FLAG) $@ $(OBJS) $(USER_OBJS) $(LIB_DEPS)
 		 * 		@echo 'Finished building: $@'
@@ -585,6 +585,10 @@ public class GnuMakefileGenerator implements IManagedBuilderMakefileGenerator {
 			buffer.append(DOT + extension);
 		}
 		buffer.append(COLON + WHITESPACE + "$(OBJS)"); //$NON-NLS-1$
+		Iterator refIter = managedProjectOutputs.listIterator();
+		while (refIter.hasNext()) {
+			buffer.append(WHITESPACE + (String)refIter.next());
+		}
 		buffer.append(NEWLINE);
 		buffer.append(TAB + AT + ECHO + WHITESPACE + SINGLE_QUOTE + MESSAGE_START_BUILD + WHITESPACE + OUT_MACRO + SINGLE_QUOTE + NEWLINE);
 		buffer.append(TAB + cmd + WHITESPACE + flags + WHITESPACE + outflag + WHITESPACE + OUT_MACRO + WHITESPACE + "$(OBJS) $(USER_OBJS) $(LIBS)" + NEWLINE); //$NON-NLS-1$
@@ -598,7 +602,13 @@ public class GnuMakefileGenerator implements IManagedBuilderMakefileGenerator {
 		}
 		buffer.append(NEWLINE + NEWLINE); 
 		
-		buffer.append(".PHONY: all clean dependents" + NEWLINE + NEWLINE); //$NON-NLS-1$
+		// Add all the eneded dummy and phony targets
+		buffer.append(".PHONY: all clean dependents" + NEWLINE); //$NON-NLS-1$
+		refIter = managedProjectOutputs.listIterator();
+		while(refIter.hasNext()) {
+			buffer.append((String)refIter.next() + COLON + NEWLINE);
+		}
+		buffer.append(NEWLINE);
 		
 		// Include makefile.targets supplemental makefile
 		buffer.append("-include $(ROOT)" + SEPARATOR + MAKEFILE_TARGETS + NEWLINE); //$NON-NLS-1$