diff --git a/.gitignore b/.gitignore
index 7f0754a..081588a 100644
--- a/.gitignore
+++ b/.gitignore
@@ -2,4 +2,5 @@ l2-setup/out
 nitro-bridge-setup/out
 nitro-bridge-setup/bridge-vars.yml
 nitro-nodes-setup/nitro-vars.yml
-nitro-nodes-setup/out/
+nitro-nodes-setup/out
+nitro-contracts-setup/out
\ No newline at end of file
diff --git a/nitro-bridge-setup/README.md b/nitro-bridge-setup/README.md
index fba9658..e9cab57 100644
--- a/nitro-bridge-setup/README.md
+++ b/nitro-bridge-setup/README.md
@@ -4,48 +4,6 @@
 
 To get started, follow the [installation](../README.md#installation) guide to setup ansible on your machine
 
-## Deploy Nitro Contracts
-
-The following commands have to be executed in [`nitro-bridge-setup`](./) directory
-
-- Copy the `contract-vars-example.yml` vars file
-
-  ```bash
-  cp contract-vars-example.yml contract-vars.yml
-  ```
-
-- Edit [`contract-vars.yml`](./contract-vars.yml) and fill in the following values
-
-  ```bash
-  # L1 RPC endpoint
-  geth_url: ""
-
-  # L1 chain ID
-  geth_chain_id: ""
-
-  # Private key for a funded account on L1 to use for contracts deployment on L1
-  geth_deployer_pk: ""
-
-  # Custom L1 token to be deployed
-  token_name: "LaconicNetworkToken"
-  token_symbol: "LNT"
-  intial_token_supply: "129600"
-  ```
-
-- To deploy the L1 nitro contracts, execute the `deploy-contracts.yml` Ansible playbook by running the following command:
-
-  NOTE: By default, deployments are created in the `nitro-nodes-setup/out` directory. To change this location, update the `nitro_directory` variable in the [setup-vars.yml](./setup-vars.yml) file.
-
-  ```bash
-  LANG=en_US.utf8 ansible-playbook -i localhost, --connection=local deploy-contracts.yml --extra-vars='{ "target_host": "localhost"}' --user $USER -kK
-  ```
-
-  - For skipping container build, run with `"skip_container_build" : true` in the `--extra-vars` parameter:
-
-    ```bash
-    LANG=en_US.utf8 ansible-playbook -i localhost, --connection=local deploy-contracts.yml --extra-vars='{ "target_host": "localhost", "skip_container_build": true }' --user $USER -kK
-    ```
-
 ## Run Nitro Bridge
 
 - Copy the `bridge-vars-example.yml` vars file
@@ -112,9 +70,6 @@ The following commands have to be executed in [`nitro-bridge-setup`](./) directo
   - Check logs for deployments:
 
     ```bash
-    # Check the L2 nitro contract deployment logs
-    laconic-so deployment --dir bridge-deployment logs l2-nitro-contracts -f
-
     # Check the bridge deployment logs, ensure that the node is running
     laconic-so deployment --dir bridge-deployment logs nitro-bridge -f
     ```
@@ -123,12 +78,6 @@ The following commands have to be executed in [`nitro-bridge-setup`](./) directo
 
 - Run the following commands in the directory where the deployments are created:
 
-  - Get addresses of L1 nitro contracts:
-
-    ```bash
-    laconic-so deployment --dir nitro-contracts-deployment exec nitro-contracts "cat /app/deployment/nitro-addresses.json"
-    ```
-
   - Get addresses of L2 nitro contracts:
 
     ```bash
diff --git a/nitro-contracts-setup/README.md b/nitro-contracts-setup/README.md
new file mode 100644
index 0000000..bf3bfe3
--- /dev/null
+++ b/nitro-contracts-setup/README.md
@@ -0,0 +1,68 @@
+# nitro-contracts-setup
+
+## Setup Ansible
+
+To get started, follow the [installation](../README.md#installation) guide to setup ansible on your machine
+
+## Deploy Nitro Contracts
+
+The following commands have to be executed in [`nitro-contracts-setup`](./) directory
+
+- Copy the `contract-vars-example.yml` vars file
+
+  ```bash
+  cp contract-vars-example.yml contract-vars.yml
+  ```
+
+- Edit [`contract-vars.yml`](./contract-vars.yml) and fill in the following values
+
+  ```bash
+  # L1 RPC endpoint
+  geth_url: ""
+
+  # L1 chain ID
+  geth_chain_id: ""
+
+  # Private key for a funded account on L1 to use for contracts deployment on L1
+  geth_deployer_pk: ""
+
+  # Custom L1 token to be deployed
+  token_name: "LaconicNetworkToken"
+  token_symbol: "LNT"
+  intial_token_supply: "129600"
+  ```
+
+- To deploy the L1 nitro contracts, execute the `deploy-contracts.yml` Ansible playbook by running the following command:
+
+  NOTE: By default, deployments are created in the `nitro-nodes-setup/out` directory. To change this location, update the `nitro_directory` variable in the [setup-vars.yml](./setup-vars.yml) file.
+
+  ```bash
+  LANG=en_US.utf8 ansible-playbook -i localhost, --connection=local deploy-contracts.yml --extra-vars='{ "target_host": "localhost"}' --user $USER -kK
+  ```
+
+  - For skipping container build, run with `"skip_container_build" : true` in the `--extra-vars` parameter:
+
+    ```bash
+    LANG=en_US.utf8 ansible-playbook -i localhost, --connection=local deploy-contracts.yml --extra-vars='{ "target_host": "localhost", "skip_container_build": true }' --user $USER -kK
+    ```
+
+## Check Deployment Status
+
+- Run the following command in the directory where the nitro-contracts-deployment is created:
+
+  - Check logs for deployments:
+
+    ```bash
+    # Check the L2 nitro contract deployment logs
+    laconic-so deployment --dir nitro-contracts-deployment logs l2-nitro-contracts -f
+    ```
+
+## Get Contract Addresses
+
+- Run the following commands in the directory where the deployments are created:
+
+  - Get addresses of L1 nitro contracts:
+
+    ```bash
+    laconic-so deployment --dir nitro-contracts-deployment exec nitro-contracts "cat /app/deployment/nitro-addresses.json"
+    ```
diff --git a/nitro-bridge-setup/contract-vars-example.yml b/nitro-contracts-setup/contract-vars-example.yml
similarity index 100%
rename from nitro-bridge-setup/contract-vars-example.yml
rename to nitro-contracts-setup/contract-vars-example.yml
diff --git a/nitro-contracts-setup/contract-vars.yml b/nitro-contracts-setup/contract-vars.yml
new file mode 100644
index 0000000..e69de29
diff --git a/nitro-bridge-setup/deploy-contracts.yml b/nitro-contracts-setup/deploy-contracts.yml
similarity index 100%
rename from nitro-bridge-setup/deploy-contracts.yml
rename to nitro-contracts-setup/deploy-contracts.yml
diff --git a/nitro-contracts-setup/setup-vars.yml b/nitro-contracts-setup/setup-vars.yml
new file mode 100644
index 0000000..7762444
--- /dev/null
+++ b/nitro-contracts-setup/setup-vars.yml
@@ -0,0 +1,3 @@
+target_host: "localhost"
+nitro_directory: ./out
+skip_container_build: false
diff --git a/nitro-bridge-setup/templates/specs/nitro-contracts-spec.yml.j2 b/nitro-contracts-setup/templates/specs/nitro-contracts-spec.yml.j2
similarity index 100%
rename from nitro-bridge-setup/templates/specs/nitro-contracts-spec.yml.j2
rename to nitro-contracts-setup/templates/specs/nitro-contracts-spec.yml.j2