diff --git a/blueprints/factories/project-factory/README.md b/blueprints/factories/project-factory/README.md
index df8701d21..68e2e1d06 100644
--- a/blueprints/factories/project-factory/README.md
+++ b/blueprints/factories/project-factory/README.md
@@ -226,8 +226,8 @@ vpc:
 | name | description | type | required | default |
 |---|---|:---:|:---:|:---:|
 | [billing_account_id](variables.tf#L17) | Billing account id. | <code>string</code> | ✓ |  |
-| [prefix](variables.tf#L145) | Prefix used for resource names. | <code>string</code> | ✓ |  |
-| [project_id](variables.tf#L154) | Project id. | <code>string</code> | ✓ |  |
+| [prefix](variables.tf#L144) | Prefix used for resource names. | <code>string</code> | ✓ |  |
+| [project_id](variables.tf#L153) | Project id. | <code>string</code> | ✓ |  |
 | [billing_alert](variables.tf#L22) | Billing alert configuration. | <code title="object&#40;&#123;&#10;  amount &#61; number&#10;  thresholds &#61; object&#40;&#123;&#10;    current    &#61; list&#40;number&#41;&#10;    forecasted &#61; list&#40;number&#41;&#10;  &#125;&#41;&#10;  credit_treatment &#61; string&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> |  | <code>null</code> |
 | [defaults](variables.tf#L35) | Project factory default values. | <code title="object&#40;&#123;&#10;  billing_account_id &#61; string&#10;  billing_alert &#61; object&#40;&#123;&#10;    amount &#61; number&#10;    thresholds &#61; object&#40;&#123;&#10;      current    &#61; list&#40;number&#41;&#10;      forecasted &#61; list&#40;number&#41;&#10;    &#125;&#41;&#10;    credit_treatment &#61; string&#10;  &#125;&#41;&#10;  environment_dns_zone  &#61; string&#10;  essential_contacts    &#61; list&#40;string&#41;&#10;  labels                &#61; map&#40;string&#41;&#10;  notification_channels &#61; list&#40;string&#41;&#10;  shared_vpc_self_link  &#61; string&#10;  vpc_host_project      &#61; string&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> |  | <code>null</code> |
 | [descriptive_name](variables.tf#L57) | Name of the project name. Used for project name instead of `name` variable. | <code>string</code> |  | <code>null</code> |
@@ -240,15 +240,15 @@ vpc:
 | [iam_additive](variables.tf#L99) | Custom additive IAM settings in role => [principal] format. | <code>map&#40;list&#40;string&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
 | [kms_service_agents](variables.tf#L105) | KMS IAM configuration in as service => [key]. | <code>map&#40;list&#40;string&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
 | [labels](variables.tf#L111) | Labels to be assigned at project level. | <code>map&#40;string&#41;</code> |  | <code>&#123;&#125;</code> |
-| [org_policies](variables.tf#L117) | Org-policy overrides at project level. | <code title="map&#40;object&#40;&#123;&#10;  inherit_from_parent &#61; optional&#40;bool&#41; &#35; for list policies only.&#10;  reset               &#61; optional&#40;bool&#41;&#10;  rules &#61; optional&#40;list&#40;object&#40;&#123;&#10;    allow &#61; optional&#40;object&#40;&#123;&#10;      all    &#61; optional&#40;bool&#41;&#10;      values &#61; optional&#40;list&#40;string&#41;&#41;&#10;    &#125;&#41;&#41;&#10;    deny &#61; optional&#40;object&#40;&#123;&#10;      all    &#61; optional&#40;bool&#41;&#10;      values &#61; optional&#40;list&#40;string&#41;&#41;&#10;    &#125;&#41;&#41;&#10;    enforce &#61; optional&#40;bool&#41; &#35; for boolean policies only.&#10;    condition &#61; object&#40;&#123;&#10;      description &#61; optional&#40;string&#41;&#10;      expression  &#61; optional&#40;string&#41;&#10;      location    &#61; optional&#40;string&#41;&#10;      title       &#61; optional&#40;string&#41;&#10;    &#125;&#41;&#10;  &#125;&#41;&#41;, &#91;&#93;&#41;&#10;&#125;&#41;&#41;">map&#40;object&#40;&#123;&#8230;&#125;&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
-| [service_accounts](variables.tf#L159) | Service accounts to be created, and roles assigned them on the project. | <code>map&#40;list&#40;string&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
-| [service_accounts_additive](variables.tf#L165) | Service accounts to be created, and roles assigned them on the project additively. | <code>map&#40;list&#40;string&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
-| [service_accounts_iam](variables.tf#L171) | IAM bindings on service account resources. Format is KEY => {ROLE => [MEMBERS]}. | <code>map&#40;map&#40;list&#40;string&#41;&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
-| [service_accounts_iam_additive](variables.tf#L178) | IAM additive bindings on service account resources. Format is KEY => {ROLE => [MEMBERS]}. | <code>map&#40;map&#40;list&#40;string&#41;&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
-| [service_identities_iam](variables.tf#L185) | Custom IAM settings for service identities in service => [role] format. | <code>map&#40;list&#40;string&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
-| [service_identities_iam_additive](variables.tf#L192) | Custom additive IAM settings for service identities in service => [role] format. | <code>map&#40;list&#40;string&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
-| [services](variables.tf#L199) | Services to be enabled for the project. | <code>list&#40;string&#41;</code> |  | <code>&#91;&#93;</code> |
-| [vpc](variables.tf#L206) | VPC configuration for the project. | <code title="object&#40;&#123;&#10;  host_project &#61; string&#10;  gke_setup &#61; object&#40;&#123;&#10;    enable_security_admin     &#61; bool&#10;    enable_host_service_agent &#61; bool&#10;  &#125;&#41;&#10;  subnets_iam &#61; map&#40;list&#40;string&#41;&#41;&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> |  | <code>null</code> |
+| [org_policies](variables.tf#L117) | Org-policy overrides at project level. | <code title="map&#40;object&#40;&#123;&#10;  inherit_from_parent &#61; optional&#40;bool&#41; &#35; for list policies only.&#10;  reset               &#61; optional&#40;bool&#41;&#10;  rules &#61; optional&#40;list&#40;object&#40;&#123;&#10;    allow &#61; optional&#40;object&#40;&#123;&#10;      all    &#61; optional&#40;bool&#41;&#10;      values &#61; optional&#40;list&#40;string&#41;&#41;&#10;    &#125;&#41;&#41;&#10;    deny &#61; optional&#40;object&#40;&#123;&#10;      all    &#61; optional&#40;bool&#41;&#10;      values &#61; optional&#40;list&#40;string&#41;&#41;&#10;    &#125;&#41;&#41;&#10;    enforce &#61; optional&#40;bool&#41; &#35; for boolean policies only.&#10;    condition &#61; optional&#40;object&#40;&#123;&#10;      description &#61; optional&#40;string&#41;&#10;      expression  &#61; optional&#40;string&#41;&#10;      location    &#61; optional&#40;string&#41;&#10;      title       &#61; optional&#40;string&#41;&#10;    &#125;&#41;, &#123;&#125;&#41;&#10;  &#125;&#41;&#41;, &#91;&#93;&#41;&#10;&#125;&#41;&#41;">map&#40;object&#40;&#123;&#8230;&#125;&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
+| [service_accounts](variables.tf#L158) | Service accounts to be created, and roles assigned them on the project. | <code>map&#40;list&#40;string&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
+| [service_accounts_additive](variables.tf#L164) | Service accounts to be created, and roles assigned them on the project additively. | <code>map&#40;list&#40;string&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
+| [service_accounts_iam](variables.tf#L170) | IAM bindings on service account resources. Format is KEY => {ROLE => [MEMBERS]}. | <code>map&#40;map&#40;list&#40;string&#41;&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
+| [service_accounts_iam_additive](variables.tf#L177) | IAM additive bindings on service account resources. Format is KEY => {ROLE => [MEMBERS]}. | <code>map&#40;map&#40;list&#40;string&#41;&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
+| [service_identities_iam](variables.tf#L184) | Custom IAM settings for service identities in service => [role] format. | <code>map&#40;list&#40;string&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
+| [service_identities_iam_additive](variables.tf#L191) | Custom additive IAM settings for service identities in service => [role] format. | <code>map&#40;list&#40;string&#41;&#41;</code> |  | <code>&#123;&#125;</code> |
+| [services](variables.tf#L198) | Services to be enabled for the project. | <code>list&#40;string&#41;</code> |  | <code>&#91;&#93;</code> |
+| [vpc](variables.tf#L205) | VPC configuration for the project. | <code title="object&#40;&#123;&#10;  host_project &#61; string&#10;  gke_setup &#61; object&#40;&#123;&#10;    enable_security_admin     &#61; bool&#10;    enable_host_service_agent &#61; bool&#10;  &#125;&#41;&#10;  subnets_iam &#61; map&#40;list&#40;string&#41;&#41;&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> |  | <code>null</code> |
 
 ## Outputs
 
diff --git a/blueprints/factories/project-factory/variables.tf b/blueprints/factories/project-factory/variables.tf
index b9a83ae3a..a2089bcfe 100644
--- a/blueprints/factories/project-factory/variables.tf
+++ b/blueprints/factories/project-factory/variables.tf
@@ -119,7 +119,6 @@ variable "org_policies" {
   type = map(object({
     inherit_from_parent = optional(bool) # for list policies only.
     reset               = optional(bool)
-    # conditional values
     rules = optional(list(object({
       allow = optional(object({
         all    = optional(bool)
@@ -130,12 +129,12 @@ variable "org_policies" {
         values = optional(list(string))
       }))
       enforce = optional(bool) # for boolean policies only.
-      condition = object({
+      condition = optional(object({
         description = optional(string)
         expression  = optional(string)
         location    = optional(string)
         title       = optional(string)
-      })
+      }), {})
     })), [])
   }))
   default  = {}