diff --git a/src/config/api-server/tests/test_crud_basic.py b/src/config/api-server/tests/test_crud_basic.py
index 47639d9a048..cad8f45fae6 100644
--- a/src/config/api-server/tests/test_crud_basic.py
+++ b/src/config/api-server/tests/test_crud_basic.py
@@ -1155,7 +1155,7 @@ def test_floatingip_as_instanceip(self):
         ip_allocated = fip_fixt.getObj().floating_ip_address
 
         logger.info("Creating auto-alloc instance-ip, expecting an error")
-        with ExpectedException(PermissionDenied) as e:
+        with ExpectedException(BadRequest) as e:
             iip_fixt = self.useFixture(
                 InstanceIpTestFixtureGen(
                     self._vnc_lib, 'iip1', auto_prop_val=False,
@@ -1191,7 +1191,7 @@ def test_aliasip_as_instanceip(self):
         ip_allocated = aip_fixt.getObj().alias_ip_address
 
         logger.info("Creating auto-alloc instance-ip, expecting an error")
-        with ExpectedException(PermissionDenied) as e:
+        with ExpectedException(BadRequest) as e:
             iip_fixt = self.useFixture(
                 InstanceIpTestFixtureGen(
                     self._vnc_lib, 'iip1', auto_prop_val=False,
diff --git a/src/config/api-server/tests/test_ip_alloc.py b/src/config/api-server/tests/test_ip_alloc.py
index 12c349aa538..6a665dd7118 100644
--- a/src/config/api-server/tests/test_ip_alloc.py
+++ b/src/config/api-server/tests/test_ip_alloc.py
@@ -145,11 +145,9 @@ def test_subnet_alloc_unit(self):
 
         logger.debug('Wrong ip address request,not aligned with alloc-unit')
         ipv4_obj1.set_instance_ip_address('11.1.1.249') 
-        try:
+        with ExpectedException(BadRequest,
+                               'Virtual-Network\(my-v4-v6-domain:my-v4-v6-proj:my-v4-v6-vn:11.1.1.0/24\) has invalid alloc_unit\(4\) in subnet\(11.1.1.0/24\)') as e:
             ipv4_id1 = self._vnc_lib.instance_ip_create(ipv4_obj1)
-        except HttpError:
-            logger.debug('requested ipaddr is not aligned with alloc-unit')
-            pass
          
         ipv4_obj1.set_instance_ip_address(None) 
         logger.debug('Allocating an IP4 address for first VM')
@@ -753,12 +751,10 @@ def test_v4_ip_allocation_exhaust(self):
             logger.debug('Created extra instance')
 
             logger.debug('Allocating an IP4 address for extra instance')
-            try:
+            with ExpectedException(BadRequest,
+                'Virtual-Network\(\[\'v4-domain\', \'v4-proj\', \'v4-vn\'\]\) has exhausted subnet\(all\)') as e:
                 ip_id1 = self._vnc_lib.instance_ip_create(ip_obj1)
-            except HttpError:
-                logger.debug('alloc pool is exhausted')
-                pass
-
+        
             # cleanup for negative test
             self._vnc_lib.virtual_machine_interface_delete(id=port_obj1.uuid)
             self._vnc_lib.virtual_machine_delete(id=vm_inst_obj1.uuid)
@@ -1015,13 +1011,13 @@ def test_ip_alloc_clash(self):
         iip2_obj = InstanceIp('clashing-iip-%s' %(self.id()),
                               instance_ip_address=iip_obj.instance_ip_address)
         iip2_obj.add_virtual_network(vn_obj)
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied,
+        with ExpectedException(cfgm_common.exceptions.BadRequest,
                                'Ip address already in use') as e:
             self._vnc_lib.instance_ip_create(iip2_obj)
         
         # allocate instance-ip clashing with existing floating-ip
         iip2_obj.set_instance_ip_address(fip_obj.floating_ip_address)
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied,
+        with ExpectedException(cfgm_common.exceptions.BadRequest,
                                'Ip address already in use') as e:
             self._vnc_lib.instance_ip_create(iip2_obj)
 
@@ -1029,7 +1025,7 @@ def test_ip_alloc_clash(self):
         fip2_obj = FloatingIp('clashing-fip-%s' %(self.id()), fip_pool_obj,
                               floating_ip_address=fip_obj.floating_ip_address)
         fip2_obj.add_project(proj_obj)
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied,
+        with ExpectedException(cfgm_common.exceptions.BadRequest,
                                'Ip address already in use') as e:
             self._vnc_lib.floating_ip_create(fip2_obj)
 
@@ -1037,37 +1033,37 @@ def test_ip_alloc_clash(self):
         aip2_obj = AliasIp('clashing-aip-%s' %(self.id()), aip_pool_obj,
                            alias_ip_address=aip_obj.alias_ip_address)
         aip2_obj.add_project(proj_obj)
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied,
+        with ExpectedException(cfgm_common.exceptions.BadRequest,
                                'Ip address already in use') as e:
             self._vnc_lib.alias_ip_create(aip2_obj)
 
         # allocate floating-ip clashing with existing instance-ip
         fip2_obj.set_floating_ip_address(iip_obj.instance_ip_address)
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied,
+        with ExpectedException(cfgm_common.exceptions.BadRequest,
                                'Ip address already in use') as e:
             self._vnc_lib.floating_ip_create(fip2_obj)
 
         # allocate alias-ip clashing with existing instance-ip
         aip2_obj.set_alias_ip_address(iip_obj.instance_ip_address)
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied,
+        with ExpectedException(cfgm_common.exceptions.BadRequest,
                                'Ip address already in use') as e:
             self._vnc_lib.alias_ip_create(aip2_obj)
 
         # allocate alias-ip clashing with existing floating-ip
         aip2_obj.set_alias_ip_address(fip_obj.floating_ip_address)
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied,
+        with ExpectedException(cfgm_common.exceptions.BadRequest,
                                'Ip address already in use') as e:
             self._vnc_lib.alias_ip_create(aip2_obj)
 
         # allocate floating-ip with gateway ip and verify failure
         fip2_obj.set_floating_ip_address('11.1.1.254')
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied,
+        with ExpectedException(cfgm_common.exceptions.BadRequest,
                                'Ip address already in use') as e:
             self._vnc_lib.floating_ip_create(fip2_obj)
 
         # allocate alias-ip with gateway ip and verify failure
         aip2_obj.set_alias_ip_address('11.1.1.254')
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied,
+        with ExpectedException(cfgm_common.exceptions.BadRequest,
                                'Ip address already in use') as e:
             self._vnc_lib.alias_ip_create(aip2_obj)
 
@@ -1085,7 +1081,7 @@ def test_ip_alloc_clash(self):
         self._vnc_lib.instance_ip_create(iip2_gw_ip)
 
         iip_gw_ip.add_virtual_machine_interface(vm_vmi_obj)
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied,
+        with ExpectedException(cfgm_common.exceptions.BadRequest,
                  'Gateway IP cannot be used by VM port') as e:
             self._vnc_lib.instance_ip_update(iip_gw_ip)
 
@@ -1097,7 +1093,7 @@ def test_ip_alloc_clash(self):
         self._vnc_lib.instance_ip_update(iip2_gw_ip)
 
         isolated_vmi_obj.add_virtual_machine(vm_obj)
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied,
+        with ExpectedException(cfgm_common.exceptions.BadRequest,
                  'Gateway IP cannot be used by VM port') as e:
             self._vnc_lib.virtual_machine_interface_update(
                 isolated_vmi_obj)
diff --git a/src/config/api-server/tests/test_kombu.py b/src/config/api-server/tests/test_kombu.py
index f56aeadffc1..a470a8abb69 100644
--- a/src/config/api-server/tests/test_kombu.py
+++ b/src/config/api-server/tests/test_kombu.py
@@ -94,13 +94,15 @@ def Connection(self, urls, **kwargs):
     @unittest.skipIf(is_kombu_client_v1,
                      "skipping because kombu client is older")
     def test_connection_monitor(self):
-        flexmock(self.mock_connect).should_receive("close").twice()
+        flexmock(self.mock_connect).should_receive("close").times(3)
         flexmock(self.mock_connect).should_receive("connect").twice()
         flexmock(self.mock_connect).should_receive("ensure_connection").twice()
         flexmock(self.mock_connect).should_receive("channel").twice()
         flexmock(self.db_client_mgr).should_receive("wait_for_resync_done"). \
             with_args().once()
         flexmock(self.mock_consumer).should_receive("consume").twice()
+        flexmock(self.mock_consumer).should_receive("close").once()
+        flexmock(self.mock_producer).should_receive("close").once()
 
         _lock = gevent.lock.Semaphore()
         _lock.acquire()
@@ -120,6 +122,7 @@ def _drain_events():
                                      self.password,
                                      self.vhost, False)
         _lock.wait()
+        kc.shutdown()
 
     @unittest.skipIf(is_kombu_client_v1,
                      "skipping because kombu client is older")
@@ -130,7 +133,7 @@ def test_connection_publish(self):
         flexmock(self.mock_connect).should_receive("channel").twice()
         flexmock(self.db_client_mgr).should_receive("wait_for_resync_done"). \
             with_args().once()
-        flexmock(self.mock_consumer).should_receive("consume").twice()
+        flexmock(self.mock_consumer).should_receive("consume").once()
 
         _lock = gevent.lock.Semaphore()
         _lock.acquire()
diff --git a/src/config/api-server/tests/test_logical_router.py b/src/config/api-server/tests/test_logical_router.py
index e3bd8a4fab5..ae02cc23052 100644
--- a/src/config/api-server/tests/test_logical_router.py
+++ b/src/config/api-server/tests/test_logical_router.py
@@ -432,7 +432,7 @@ def test_vm_port_not_added_to_lr(self):
         # Add Router Interface
         lr.add_virtual_machine_interface(vm_port_obj)
         logger.debug("Trying to Link VM's VMI object and LR object")
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied) as e:
+        with ExpectedException(cfgm_common.exceptions.BadRequest) as e:
             self._vnc_lib.logical_router_update(lr)
         logger.debug("Linking VM's VMI object and LR object failed as expected")
         lr.del_virtual_machine_interface(vm_port_obj)
@@ -443,10 +443,11 @@ def test_vm_port_not_added_to_lr(self):
         lr.add_virtual_machine_interface(port_obj)
         self._vnc_lib.logical_router_update(lr)
         logger.debug("Link VM to internal interface of a LR")
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied) as e:
+        with ExpectedException(cfgm_common.exceptions.BadRequest) as e:
             port_obj.add_virtual_machine(vm_inst_obj)
             self._vnc_lib.virtual_machine_interface_update(port_obj)
         logger.debug("Linking VM to internal interface of LR failed as expected")
+        self._vnc_lib.logical_router_delete(id=lr.uuid)
     # end test_vm_port_not_added_to_lr
 
     def create_port(self, project, vn):
@@ -513,7 +514,7 @@ def test_same_network_not_attached_to_lr(self):
         self._vnc_lib.virtual_network_update(net_obj)
 
         logger.debug("Try adding gateway from same network as of interface to LR object")
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied) as e:
+        with ExpectedException(cfgm_common.exceptions.BadRequest) as e:
             lr.add_virtual_network(net_obj)
             self._vnc_lib.logical_router_update(lr)
         logger.debug("Adding gateway from same network as of interface to LR object failed as expected")
@@ -529,11 +530,11 @@ def test_same_network_not_attached_to_lr(self):
         # Create Port
         port_obj = self.create_port(project, net_obj)
         logger.debug("Try adding interafce from same network as of gateway to LR object")
-        with ExpectedException(cfgm_common.exceptions.PermissionDenied) as e:
+        with ExpectedException(cfgm_common.exceptions.BadRequest) as e:
             lr.add_virtual_machine_interface(port_obj)
             self._vnc_lib.logical_router_update(lr)
         logger.debug("Adding interface from same network as of gateway to LR object failed as expected")
-
+        self._vnc_lib.logical_router_delete(id=lr.uuid)
 
     # end test_same_network_not_attached_to_lr
 #end class TestLogicalRouter
diff --git a/src/config/api-server/vnc_addr_mgmt.py b/src/config/api-server/vnc_addr_mgmt.py
index 0d7e7af5aff..185e0dc2bb5 100644
--- a/src/config/api-server/vnc_addr_mgmt.py
+++ b/src/config/api-server/vnc_addr_mgmt.py
@@ -1051,7 +1051,7 @@ def ip_alloc_req(self, vn_fq_name, vn_dict=None, sub=None, asked_ip_addr=None,
                     raise AddrMgmtAllocUnitInvalid(
                         subnet_obj._name,
                         subnet_obj._prefix+'/'+subnet_obj._prefix_len,
-                        ip_alloc_unit)
+                        subnet_obj.alloc_unit)
 
                 return subnet_obj.ip_reserve(ipaddr=asked_ip_addr,
                                              value=alloc_id)
diff --git a/src/config/api-server/vnc_cfg_types.py b/src/config/api-server/vnc_cfg_types.py
index 86688f5c1b5..09fb83b8743 100644
--- a/src/config/api-server/vnc_cfg_types.py
+++ b/src/config/api-server/vnc_cfg_types.py
@@ -185,7 +185,7 @@ def pre_dbe_create(cls, tenant_name, obj_dict, db_conn):
         vn_fq_name = obj_dict['fq_name'][:-2]
         req_ip = obj_dict.get("floating_ip_address")
         if req_ip and cls.addr_mgmt.is_ip_allocated(req_ip, vn_fq_name):
-            return (False, (403, 'Ip address already in use'))
+            return (False, (400, 'Ip address already in use'))
         try:
             fip_addr = cls.addr_mgmt.ip_alloc_req(vn_fq_name,
                                                   asked_ip_addr=req_ip,
@@ -271,7 +271,7 @@ def pre_dbe_create(cls, tenant_name, obj_dict, db_conn):
         vn_fq_name = obj_dict['fq_name'][:-2]
         req_ip = obj_dict.get("alias_ip_address")
         if req_ip and cls.addr_mgmt.is_ip_allocated(req_ip, vn_fq_name):
-            return (False, (403, 'Ip address already in use'))
+            return (False, (400, 'Ip address already in use'))
         try:
             aip_addr = cls.addr_mgmt.ip_alloc_req(vn_fq_name,
                                                   asked_ip_addr=req_ip,
@@ -430,10 +430,10 @@ def pre_dbe_create(cls, tenant_name, obj_dict, db_conn):
         # for g/w ip, creation allowed but only can ref to router port.
         if req_ip and cls.addr_mgmt.is_ip_allocated(req_ip, vn_fq_name):
             if not cls._is_gateway_ip(vn_dict, req_ip):
-                return (False, (403, 'Ip address already in use'))
+                return (False, (400, 'Ip address already in use'))
             elif cls._vmi_has_vm_ref(db_conn, obj_dict):
                 return (False,
-                    (403, 'Gateway IP cannot be used by VM port'))
+                    (400, 'Gateway IP cannot be used by VM port'))
         # end if request has ip addr
 
         try:
@@ -451,7 +451,7 @@ def undo():
             # end undo
             get_context().push_undo(undo)
         except Exception as e:
-            return (False, (500, str(e)))
+            return (False, (400, str(e)))
         obj_dict['instance_ip_address'] = ip_addr
         db_conn.config_log('AddrMgmt: alloc %s for vn=%s, tenant=%s, askip=%s'
             % (obj_dict['instance_ip_address'],
@@ -489,7 +489,7 @@ def pre_dbe_update(cls, id, fq_name, obj_dict, db_conn,
         if cls._is_gateway_ip(vn_dict,
                               db_iip_dict.get('instance_ip_address')):
             if cls._vmi_has_vm_ref(db_conn, req_iip_dict):
-                return (False, (403, 'Gateway IP cannot be used by VM port'))
+                return (False, (400, 'Gateway IP cannot be used by VM port'))
         # end if gateway ip
 
         return True, ""
@@ -553,7 +553,7 @@ def is_port_in_use_by_vm(cls, obj_dict, db_conn):
                     read_result.get('virtual_machine_refs')):
                 msg = "Port(%s) already in use by virtual-machine(%s)" %\
                       (vmi_id, read_result['parent_uuid'])
-                return (False, (403, msg))
+                return (False, (400, msg))
         return (True, '')
 
     @classmethod
@@ -570,7 +570,7 @@ def is_port_gateway_in_same_network(cls, db_conn, vmi_refs, vn_refs):
                 if vn_ref['uuid'] in interface_vn_uuids:
                     msg = "Logical router interface and gateway cannot be in VN(%s)" %\
                           (vn_ref['uuid'])
-                    return (False, (403, msg))
+                    return (False, (400, msg))
         return (True, '')
 
     @classmethod
@@ -810,13 +810,13 @@ def pre_dbe_update(cls, id, fq_name, obj_dict, db_conn,
         if (read_result.get('logical_router_back_refs') and
                 obj_dict.get('virtual_machine_refs')):
             return (False,
-                    (403, 'Logical router interface cannot be used by VM'))
+                    (400, 'Logical router interface cannot be used by VM'))
         # check if vmi is going to point to vm and if its using
         # gateway address in iip, disallow
         for iip_ref in read_result.get('instance_ip_back_refs') or []:
             if (obj_dict.get('virtual_machine_refs') and
                 InstanceIpServer.is_gateway_ip(db_conn, iip_ref['uuid'])):
-                return (False, (403, 'Gateway IP cannot be used by VM port'))
+                return (False, (400, 'Gateway IP cannot be used by VM port'))
 
         if ('virtual_machine_interface_refs' in obj_dict and
                 'virtual_machine_interface_refs' in read_result):
@@ -1424,7 +1424,7 @@ def validate_dns_server(cls, obj_dict, db_conn):
 
         ttl = vdns_data['default_ttl_seconds']
         if ttl < 0 or ttl > 2147483647:
-            return (False, (403, "Invalid value for TTL"))
+            return (False, (400, "Invalid value for TTL"))
 
         if 'next_virtual_DNS' in vdns_data:
             vdns_next = vdns_data['next_virtual_DNS']
@@ -1440,7 +1440,7 @@ def validate_dns_server(cls, obj_dict, db_conn):
                         vdns_data['next_virtual_DNS']):
                     return (
                         False,
-                        (403,
+                        (400,
                          "Invalid Virtual Forwarder(next virtual dns server)"))
                 else:
                     return True, ""
diff --git a/src/config/common/exceptions.py b/src/config/common/exceptions.py
index 2d8fcb0eb1c..d68cbd6f0a8 100644
--- a/src/config/common/exceptions.py
+++ b/src/config/common/exceptions.py
@@ -48,7 +48,7 @@ def __init__(self, status_code, content):
     # end __init__
 
     def __str__(self):
-        return 'HTTP Status: %s Content: %s' % (self.status_code, self.content)
+        return self.content
     # end __str__
 # end class BadRequest
 
diff --git a/src/config/schema-transformer/test/test_route_table.py b/src/config/schema-transformer/test/test_route_table.py
index 5b87fe12e34..cf74bf5761e 100644
--- a/src/config/schema-transformer/test/test_route_table.py
+++ b/src/config/schema-transformer/test/test_route_table.py
@@ -134,7 +134,6 @@ def _match_route_table_cleanup(vn):
 
         self._vnc_lib.virtual_network_delete(fq_name=vn1.get_fq_name())
         self._vnc_lib.virtual_network_delete(fq_name=vn2.get_fq_name())
-        gevent.sleep(2)
         self._vnc_lib.route_table_delete(fq_name=rt.get_fq_name())
     # test_add_delete_static_route
 
diff --git a/src/config/svc-monitor/svc_monitor/instance_manager.py b/src/config/svc-monitor/svc_monitor/instance_manager.py
index 2d472b182c3..88f817c17b8 100644
--- a/src/config/svc-monitor/svc_monitor/instance_manager.py
+++ b/src/config/svc-monitor/svc_monitor/instance_manager.py
@@ -109,7 +109,7 @@ def _allocate_iip_for_family(self, vn_obj, iip_name, iip_family):
                 self._vnc_lib.instance_ip_create(iip_obj)
             except RefsExistError:
                 iip_obj = self._vnc_lib.instance_ip_read(fq_name=[iip_name])
-            except HttpError:
+            except BadRequest:
                 return None
 
         InstanceIpSM.locate(iip_obj.uuid)
diff --git a/src/config/svc-monitor/svc_monitor/snat_agent.py b/src/config/svc-monitor/svc_monitor/snat_agent.py
index 1d0a36b6d8a..35518929a48 100644
--- a/src/config/svc-monitor/svc_monitor/snat_agent.py
+++ b/src/config/svc-monitor/svc_monitor/snat_agent.py
@@ -218,6 +218,15 @@ def delete_snat_instance(self, router_obj):
         # Delete service instance
         if si_obj:
             self._vnc_lib.service_instance_delete(id=si_uuid)
+
+        # Delete left network
+        vn_name = '%s_%s' % (svc_info.get_snat_left_vn_prefix(),
+                             si_obj.name)
+        vn_fq_name = si_obj.fq_name[:-1] + [vn_name]
+        try:
+            self._vnc_lib.virtual_network_delete(fq_name=vn_fq_name)
+        except (RefsExistError, NoIdError):
+            pass
     # end delete_snat_instance
 
     def cleanup_snat_instance(self, lr_id, si_id):
diff --git a/src/config/svc-monitor/svc_monitor/svc_monitor.py b/src/config/svc-monitor/svc_monitor/svc_monitor.py
index f8c06f1711b..dd2107e5d0c 100644
--- a/src/config/svc-monitor/svc_monitor/svc_monitor.py
+++ b/src/config/svc-monitor/svc_monitor/svc_monitor.py
@@ -591,8 +591,6 @@ def timer_callback(monitor):
                 continue
             if vn.name in svc_info.get_shared_vn_list():
                 monitor._delete_shared_vn(vn.uuid)
-            elif vn.name.startswith(svc_info.get_snat_left_vn_prefix()):
-                monitor._delete_shared_vn(vn.uuid)
 
 
 def launch_timer(monitor):
diff --git a/src/config/vnc_openstack/vnc_openstack/neutron_plugin_db.py b/src/config/vnc_openstack/vnc_openstack/neutron_plugin_db.py
index 34e93afbca6..aa2ade49f62 100644
--- a/src/config/vnc_openstack/vnc_openstack/neutron_plugin_db.py
+++ b/src/config/vnc_openstack/vnc_openstack/neutron_plugin_db.py
@@ -45,12 +45,14 @@ def __init__(self, manager, admin_name, admin_password, admin_tenant_name,
                  api_srvr_ip, api_srvr_port, user_info=None,
                  contrail_extensions_enabled=True,
                  list_optimization_enabled=False,
-                 apply_subnet_host_routes=False):
+                 apply_subnet_host_routes=False,
+                 strict_compliance=False):
         self._manager = manager
         self.logger = manager.logger
         self._api_srvr_ip = api_srvr_ip
         self._api_srvr_port = api_srvr_port
         self._apply_subnet_host_routes = apply_subnet_host_routes
+        self._strict_compliance = strict_compliance
 
         self._contrail_extensions_enabled = contrail_extensions_enabled
         self._list_optimization_enabled = list_optimization_enabled
@@ -211,7 +213,7 @@ def _security_group_rule_create(self, sg_id, sg_rule):
 
         try:
             self._vnc_lib.security_group_update(sg_vnc)
-        except PermissionDenied as e:
+        except (BadRequest, PermissionDenied) as e:
             self._raise_contrail_exception('BadRequest',
                 resource='security_group_rule', msg=str(e))
         except OverQuota as e:
@@ -1394,6 +1396,7 @@ def _subnet_neutron_to_vnc(self, subnet_q):
         sn_name=subnet_q.get('name')
         subnet_vnc = IpamSubnetType(subnet=SubnetType(pfx, pfx_len),
                                     default_gateway=default_gw,
+                                    dns_server_address='0.0.0.0' if self._strict_compliance else None,
                                     enable_dhcp=dhcp_config,
                                     dns_nameservers=None,
                                     allocation_pools=alloc_pools,
@@ -3535,6 +3538,7 @@ def _port_create_instance_ip(self, net_obj, port_obj, port_q, ip_family="v4"):
                 subnet_id = fixed_ip.get('subnet_id')
                 ip_id = self._create_instance_ip(net_obj, port_obj, ip_addr,
                                                  subnet_id, ip_family)
+
                 created_iip_ids.append(ip_id)
             except vnc_exc.HttpError as e:
                 # Resources are not available
@@ -3601,6 +3605,10 @@ def port_create(self, context, port_q):
                          {'fixed_ips':[{'ip_address': None,
                                         'subnet_id':subnet_id}]},
                                                   ip_family="v6")
+        except BadRequest as e:
+            # failure in creating the instance ip. Roll back
+            self._virtual_machine_interface_delete(port_id=port_id)
+            self._raise_contrail_exception('BadRequest', resource='port', msg=str(e))
         except vnc_exc.HttpError:
             # failure in creating the instance ip. Roll back
             self._virtual_machine_interface_delete(port_id=port_id)
diff --git a/src/config/vnc_openstack/vnc_openstack/neutron_plugin_interface.py b/src/config/vnc_openstack/vnc_openstack/neutron_plugin_interface.py
index 085c90db032..e41c624f83e 100644
--- a/src/config/vnc_openstack/vnc_openstack/neutron_plugin_interface.py
+++ b/src/config/vnc_openstack/vnc_openstack/neutron_plugin_interface.py
@@ -48,6 +48,13 @@ def __init__(self, api_server_ip, api_server_port, conf_sections, sandesh):
             exts_enabled = True
         self._contrail_extensions_enabled = exts_enabled
 
+        try:
+            strict = conf_sections.getboolean('NEUTRON',
+                'strict_compliance')
+        except (ConfigParser.NoSectionError, ConfigParser.NoOptionError):
+            strict = False
+        self._strict_compliance = strict
+
         try:
             _vnc_connection_cache_size = int(
                 conf_sections.get("DEFAULTS", "vnc_connection_cache_size"))
@@ -97,7 +104,8 @@ def _connect_to_db(self):
                                       contrail_extensions_enabled=exts_enabled,
                                       list_optimization_enabled=\
                                       self._list_optimization_enabled,
-                                      apply_subnet_host_routes=apply_sn_route)
+                                      apply_subnet_host_routes=apply_sn_route,
+                                      strict_compliance=self._strict_compliance)
     #end _connect_to_db
 
     def _get_user_cfgdb(self, context):
diff --git a/src/config/vnc_openstack/vnc_openstack/tests/test_naming.py b/src/config/vnc_openstack/vnc_openstack/tests/test_naming.py
index c53633cdd0e..cd53a4b1225 100644
--- a/src/config/vnc_openstack/vnc_openstack/tests/test_naming.py
+++ b/src/config/vnc_openstack/vnc_openstack/tests/test_naming.py
@@ -17,16 +17,6 @@
 logger = logging.getLogger(__name__)
 
 class NBTestNaming(test_case.NeutronBackendTestCase):
-    def _create_project(self, proj_name):
-        proj_obj = Project(proj_name)
-        self.addDetail('creating-project', content.text_content(proj_name))
-        self._vnc_lib.project_create(proj_obj)
-        #default_sg_obj = SecurityGroup('default', parent_obj=proj_obj)
-        #import pdb; pdb.et_trace()
-        #self._vnc_lib.security_group_create(default_sg_obj)
-        return proj_obj
-    # end _create_project
-        
     def _create_resource(self, res_type, proj_id, name=None, extra_res_fields=None):
         context = {'operation': 'CREATE',
                    'user_id': '',
@@ -91,8 +81,7 @@ def _list_resources(self, res_type, fields=None, tenant_id=None, name=None):
     # end _list_resources
 
     def test_name_change(self):
-        proj_name = 'project-%s' %(str(uuid.uuid4()))
-        proj_obj = self._create_project(proj_name)
+        proj_obj = self._vnc_lib.project_read(fq_name=['default-domain', 'default-project'])
         for res_type in ['network', 'subnet', 'security_group', 'port', 'router']:
             # create a resource
             res_name, res_q = getattr(self, '_create_' + res_type, lambda x:self._create_resource(res_type, x))(proj_obj.uuid)
@@ -115,8 +104,7 @@ def test_name_change(self):
     # end test_name_change
 
     def test_duplicate_name(self):
-        proj_name = 'project-%s' %(str(uuid.uuid4()))
-        proj_obj = self._create_project(proj_name)
+        proj_obj = self._vnc_lib.project_read(fq_name=['default-domain', 'default-project'])
         for res_type in ['network', 'subnet', 'security_group', 'port', 'router']:
             # create a resource
             res_name, res_q = getattr(self, '_create_' + res_type, lambda x:self._create_resource(res_type, x))(proj_obj.uuid)