diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3c7bac81f..ff42d198c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -41,6 +41,7 @@ All notable changes to this project will be documented in this file.
 
 ### MODULES
 
+- [[#3442](https://github.com/GoogleCloudPlatform/cloud-foundation-fabric/pull/3442)] Apply alerts and log based metrics after log buckets creation ([vannicktrinquier](https://github.com/vannicktrinquier)) <!-- 2025-10-20 06:13:42+00:00 -->
 - [[#3440](https://github.com/GoogleCloudPlatform/cloud-foundation-fabric/pull/3440)] Support resource-level factories config in project factory module and FAST stages ([ludoo](https://github.com/ludoo)) <!-- 2025-10-18 10:41:19+00:00 -->
 - [[#3436](https://github.com/GoogleCloudPlatform/cloud-foundation-fabric/pull/3436)] Add service agent outputs to folder and organization ([juliocc](https://github.com/juliocc)) <!-- 2025-10-17 15:23:08+00:00 -->
 - [[#3423](https://github.com/GoogleCloudPlatform/cloud-foundation-fabric/pull/3423)] bigquery-connection module ([lcaggio](https://github.com/lcaggio)) <!-- 2025-10-16 15:15:36+00:00 -->
diff --git a/modules/project-factory/projects.tf b/modules/project-factory/projects.tf
index 71b521db4..caf52382b 100644
--- a/modules/project-factory/projects.tf
+++ b/modules/project-factory/projects.tf
@@ -73,7 +73,7 @@ module "projects" {
   })
   default_service_account = try(each.value.default_service_account, "keep")
   descriptive_name        = try(each.value.descriptive_name, null)
-  factories_config        = each.value.factories_config
+  factories_config        = { for k, v in each.value.factories_config : k => v if k != "observability" }
   labels = merge(
     each.value.labels, var.data_merges.labels
   )
@@ -118,6 +118,7 @@ module "projects-iam" {
     kms_keys       = local.ctx.kms_keys
     iam_principals = local.ctx_iam_principals
   })
+  factories_config           = { for k, v in each.value.factories_config : k => v if k == "observability" }
   iam                        = lookup(each.value, "iam", {})
   iam_bindings               = lookup(each.value, "iam_bindings", {})
   iam_bindings_additive      = lookup(each.value, "iam_bindings_additive", {})