diff --git a/src/MagentoHackathon/Composer/Magento/ProjectConfig.php b/src/MagentoHackathon/Composer/Magento/ProjectConfig.php
index 381a4cc6..6c4853c4 100644
--- a/src/MagentoHackathon/Composer/Magento/ProjectConfig.php
+++ b/src/MagentoHackathon/Composer/Magento/ProjectConfig.php
@@ -437,7 +437,11 @@ public function getComposerRepositories()
      */
     public function getVendorDir()
     {
-        return $this->fetchVarFromConfigArray($this->composerConfig, 'vendor-dir', 'vendor');
+        return $this->fetchVarFromConfigArray(
+            $this->composerConfig['config'],
+            'vendor-dir',
+            getcwd() . '/vendor'
+        );
     }
 
     /**
diff --git a/tests/MagentoHackathon/Composer/Magento/ModuleManagerTest.php b/tests/MagentoHackathon/Composer/Magento/ModuleManagerTest.php
index 14a8eafb..a46fcc94 100644
--- a/tests/MagentoHackathon/Composer/Magento/ModuleManagerTest.php
+++ b/tests/MagentoHackathon/Composer/Magento/ModuleManagerTest.php
@@ -30,7 +30,7 @@ public function setUp()
             new InstalledPackageDumper()
         );
 
-        $config = new ProjectConfig(array(), array('vendor-dir' => 'vendor'));
+        $config = new ProjectConfig(array(), array('config' => array('vendor-dir' => 'vendor')));
         $this->unInstallStrategy =
             $this->getMock('MagentoHackathon\Composer\Magento\UnInstallStrategy\UnInstallStrategyInterface');