diff --git a/.github/workflows/tests-factory.yml b/.github/workflows/tests-factory.yml
new file mode 100644
index 00000000..80177504
--- /dev/null
+++ b/.github/workflows/tests-factory.yml
@@ -0,0 +1,14 @@
+name: Tests Factory
+on: push
+jobs:
+  workflows:
+    strategy:
+      matrix:
+        platform: [ubuntu-latest, macos-latest]
+    runs-on: ${{ matrix.platform }}
+    steps:
+      - uses: actions/checkout@v4
+      - name: Install and test modules
+        run: |
+          cd ./factory
+          cargo test
diff --git a/factory/Cargo.toml b/factory/Cargo.toml
new file mode 100644
index 00000000..1f3f1fd8
--- /dev/null
+++ b/factory/Cargo.toml
@@ -0,0 +1,33 @@
+[package]
+name = "contract"
+description = "Factory Contract Example"
+version = "0.1.0"
+edition = "2021"
+# TODO: Fill out the repository field to help NEAR ecosystem tools to discover your project.
+# NEP-0330 is automatically implemented for all contracts built with https://github.com/near/cargo-near.
+# Link to the repository will be available via `contract_source_metadata` view-function.
+#repository = "https://github.com/xxx/xxx"
+
+[lib]
+crate-type = ["cdylib", "rlib"]
+
+# See more keys and their definitions at https://doc.rust-lang.org/cargo/reference/manifest.html
+[dependencies]
+near-sdk = { version = "5.5.0", features = ["unstable"] }
+
+[dev-dependencies]
+near-sdk = { version = "5.5.0", features = ["unit-testing"] }
+near-workspaces = { version = "0.14.0", features = ["unstable"] }
+tokio = { version = "1.12.0", features = ["full"] }
+serde_json = "1"
+chrono = "0.4.38"
+
+[profile.release]
+codegen-units = 1
+# Tell `rustc` to optimize for small code size.
+opt-level = "z"
+lto = true
+debug = false
+panic = "abort"
+# Opt into extra safety checks on arithmetic operations https://stackoverflow.com/a/64136471/249801
+overflow-checks = true
diff --git a/factory/rust-toolchain.toml b/factory/rust-toolchain.toml
new file mode 100644
index 00000000..a82ade34
--- /dev/null
+++ b/factory/rust-toolchain.toml
@@ -0,0 +1,4 @@
+[toolchain]
+channel = "stable"
+components = ["rustfmt"]
+targets = ["wasm32-unknown-unknown"]
diff --git a/factory/src/auction-contract/auction.wasm b/factory/src/auction-contract/auction.wasm
new file mode 100755
index 00000000..aecb4ec0
Binary files /dev/null and b/factory/src/auction-contract/auction.wasm differ
diff --git a/factory/src/deploy.rs b/factory/src/deploy.rs
new file mode 100644
index 00000000..a438e04f
--- /dev/null
+++ b/factory/src/deploy.rs
@@ -0,0 +1,107 @@
+use near_sdk::json_types::{U128, U64};
+use near_sdk::serde::Serialize;
+use near_sdk::{env, log, near, AccountId, NearToken, Promise, PromiseError};
+
+use crate::{Contract, ContractExt, NEAR_PER_STORAGE, NO_DEPOSIT, TGAS};
+
+pub type TokenId = String;
+
+#[derive(Serialize)]
+#[serde(crate = "near_sdk::serde")]
+struct AuctionInitArgs {
+    end_time: U64,
+    auctioneer: AccountId,
+    ft_contract: AccountId,
+    nft_contract: AccountId,
+    token_id: TokenId,
+    starting_price: U128,
+}
+
+#[near]
+impl Contract {
+    #[payable]
+    pub fn deploy_new_auction(
+        &mut self,
+        name: String,
+        end_time: U64,
+        auctioneer: AccountId,
+        ft_contract: AccountId,
+        nft_contract: AccountId,
+        token_id: TokenId,
+        starting_price: U128,
+    ) -> Promise {
+        // Assert the sub-account is valid
+        let current_account = env::current_account_id().to_string();
+        let subaccount: AccountId = format!("{name}.{current_account}").parse().unwrap();
+        assert!(
+            env::is_valid_account_id(subaccount.as_bytes()),
+            "Invalid subaccount"
+        );
+
+        // Assert enough tokens are attached to create the account and deploy the contract
+        let attached = env::attached_deposit();
+
+        let code = self.code.clone().unwrap();
+        let contract_bytes = code.len() as u128;
+        let contract_storage_cost = NEAR_PER_STORAGE.saturating_mul(contract_bytes);
+        let minimum_needed = contract_storage_cost.saturating_add(NearToken::from_millinear(100));
+        assert!(
+            attached >= minimum_needed,
+            "Attach at least {minimum_needed} yⓃ"
+        );
+
+        let args = &AuctionInitArgs {
+            end_time,
+            auctioneer,
+            ft_contract,
+            nft_contract,
+            token_id,
+            starting_price,
+        };
+
+        let init_args = near_sdk::serde_json::to_vec(args).unwrap();
+
+        let promise = Promise::new(subaccount.clone())
+            .create_account()
+            .transfer(attached)
+            .deploy_contract(code)
+            .function_call(
+                "init".to_owned(),
+                init_args,
+                NO_DEPOSIT,
+                TGAS.saturating_mul(5),
+            );
+
+        // Add callback
+        promise.then(
+            Self::ext(env::current_account_id()).deploy_new_auction_callback(
+                subaccount,
+                env::predecessor_account_id(),
+                attached,
+            ),
+        )
+    }
+
+    #[private]
+    pub fn deploy_new_auction_callback(
+        &mut self,
+        account: AccountId,
+        user: AccountId,
+        attached: NearToken,
+        #[callback_result] create_deploy_result: Result<(), PromiseError>,
+    ) -> bool {
+        if let Ok(_result) = create_deploy_result {
+            log!("Correctly created and deployed to {}", account);
+            return true;
+        };
+
+        log!(
+            "Error creating {}, returning {}yⓃ to {}",
+            account,
+            attached,
+            user
+        );
+        Promise::new(user).transfer(attached);
+        false
+    }
+}
diff --git a/factory/src/lib.rs b/factory/src/lib.rs
new file mode 100644
index 00000000..046e1bc0
--- /dev/null
+++ b/factory/src/lib.rs
@@ -0,0 +1,31 @@
+// Find all our documentation at https://docs.near.org
+use near_sdk::store::LazyOption;
+use near_sdk::{near, Gas, NearToken};
+
+mod deploy;
+mod manager;
+
+const NEAR_PER_STORAGE: NearToken = NearToken::from_yoctonear(10u128.pow(19)); // 10e19yⓃ
+const AUCTION_CONTRACT: &[u8] = include_bytes!("./auction-contract/auction.wasm");
+const TGAS: Gas = Gas::from_tgas(1);
+const NO_DEPOSIT: NearToken = NearToken::from_near(0); // 0yⓃ
+
+// Define the contract structure
+#[near(contract_state)]
+pub struct Contract {
+    // Since a contract is something big to store, we use LazyOptions
+    // this way it is not deserialized on each method call
+    code: LazyOption<Vec<u8>>,
+    // Please note that it is much more efficient to **not** store this
+    // code in the state, and directly use `AUCTION_CONTRACT`
+    // However, this does not enable to update the stored code.
+}
+
+// Define the default, which automatically initializes the contract
+impl Default for Contract {
+    fn default() -> Self {
+        Self {
+            code: LazyOption::new("code".as_bytes(), Some(AUCTION_CONTRACT.to_vec())),
+        }
+    }
+}
diff --git a/factory/src/manager.rs b/factory/src/manager.rs
new file mode 100644
index 00000000..cf2e6fb2
--- /dev/null
+++ b/factory/src/manager.rs
@@ -0,0 +1,19 @@
+use near_sdk::{env, near};
+
+use crate::{Contract, ContractExt};
+
+#[near]
+impl Contract {
+    #[private]
+    pub fn update_auction_contract(&mut self) {
+        // This method receives the code to be stored in the contract directly
+        // from the contract's input. In this way, it avoids the overhead of
+        // deserializing parameters, which would consume a huge amount of GAS
+        self.code.set(env::input());
+    }
+
+    pub fn get_code(&self) -> &Vec<u8> {
+        // If a contract wants to update themselves, they can ask for the code needed
+        self.code.get().as_ref().unwrap()
+    }
+}
diff --git a/factory/tests/fungible_token.wasm b/factory/tests/fungible_token.wasm
new file mode 100755
index 00000000..40045b57
Binary files /dev/null and b/factory/tests/fungible_token.wasm differ
diff --git a/factory/tests/tests_basics.rs b/factory/tests/tests_basics.rs
new file mode 100644
index 00000000..21c97733
--- /dev/null
+++ b/factory/tests/tests_basics.rs
@@ -0,0 +1,189 @@
+use chrono::Utc;
+use near_sdk::{json_types::U128, NearToken};
+use near_sdk::{near, AccountId, Gas};
+use near_workspaces::result::ExecutionFinalResult;
+use near_workspaces::{Account, Contract};
+use serde_json::json;
+
+const TEN_NEAR: NearToken = NearToken::from_near(10);
+const FT_WASM_FILEPATH: &str = "./tests/fungible_token.wasm";
+
+#[near(serializers = [json])]
+pub struct Bid {
+    pub bidder: AccountId,
+    pub bid: U128,
+}
+
+#[tokio::test]
+
+async fn test_contract_is_operational() -> Result<(), Box<dyn std::error::Error>> {
+    let sandbox = near_workspaces::sandbox().await?;
+
+    let root: near_workspaces::Account = sandbox.root_account()?;
+
+    // Create accounts
+    let alice = create_subaccount(&root, "alice").await?;
+    let auctioneer = create_subaccount(&root, "auctioneer").await?;
+    let contract_account = create_subaccount(&root, "contract").await?;
+    let nft_account = create_subaccount(&root, "nft").await?;
+
+    let ft_wasm = std::fs::read(FT_WASM_FILEPATH)?;
+    let ft_contract = sandbox.dev_deploy(&ft_wasm).await?;
+
+    // Initialize FT contract
+    let res = ft_contract
+        .call("new_default_meta")
+        .args_json(serde_json::json!({
+            "owner_id": root.id(),
+            "total_supply": U128(1_000_000),
+        }))
+        .transact()
+        .await?;
+
+    assert!(res.is_success());
+
+    // Skip creating NFT contract as we are are only going to test making a bid to the auction
+
+    // Deploy factory contract
+    let contract_wasm = near_workspaces::compile_project("./").await?;
+    let contract = contract_account.deploy(&contract_wasm).await?.unwrap();
+
+    // Create auction by calling factory contract
+    let now = Utc::now().timestamp();
+    let a_minute_from_now = (now + 60) * 1000000000;
+    let starting_price = U128(10_000);
+
+    let deploy_new_auction: ExecutionFinalResult = alice
+        .call(contract.id(), "deploy_new_auction")
+        .args_json(
+            json!({"name": "new-auction", "end_time": a_minute_from_now.to_string(),"auctioneer": auctioneer.id(),"ft_contract": ft_contract.id(),"nft_contract": nft_account.id(),"token_id":"1", "starting_price":starting_price }),
+        )
+        .max_gas()
+        .deposit(NearToken::from_millinear(1600))
+        .transact()
+        .await?;
+
+    assert!(deploy_new_auction.is_success());
+
+    let auction_account_id: AccountId = format!("new-auction.{}", contract.id()).parse().unwrap();
+
+    // Register accounts
+    for account_id in [alice.id().clone(), auction_account_id.clone()].iter() {
+        let register = ft_contract
+            .call("storage_deposit")
+            .args_json(serde_json::json!({ "account_id": account_id }))
+            .deposit(NearToken::from_yoctonear(8000000000000000000000))
+            .transact()
+            .await?;
+
+        assert!(register.is_success());
+    }
+
+    // Transfer FTs
+    let transfer_amount = U128(150_000);
+
+    let root_transfer_alice =
+        ft_transfer(&root, alice.clone(), ft_contract.clone(), transfer_amount).await?;
+    assert!(root_transfer_alice.is_success());
+
+    // Alice makes a bid
+    let alice_bid = ft_transfer_call(
+        alice.clone(),
+        ft_contract.id(),
+        &auction_account_id,
+        U128(50_000),
+    )
+    .await?;
+
+    assert!(alice_bid.is_success());
+
+    let highest_bid_alice: Bid = alice
+        .view(&auction_account_id, "get_highest_bid")
+        .args_json({})
+        .await?
+        .json()?;
+    assert_eq!(highest_bid_alice.bid, U128(50_000));
+    assert_eq!(highest_bid_alice.bidder, *alice.id());
+
+    let contract_account_balance: U128 = ft_balance_of(&ft_contract, &auction_account_id).await?;
+    assert_eq!(contract_account_balance, U128(50_000));
+    let alice_balance_after_bid: U128 = ft_balance_of(&ft_contract, alice.id()).await?;
+    assert_eq!(alice_balance_after_bid, U128(100_000));
+
+    // Try to launch a new auction with insufficient deposit
+    let deploy_new_auction: ExecutionFinalResult = alice
+        .call(contract.id(), "deploy_new_auction")
+        .args_json(
+            json!({"name": "new-auction", "end_time": a_minute_from_now.to_string(),"auctioneer": auctioneer.id(),"ft_contract": ft_contract.id(),"nft_contract": nft_account.id(),"token_id":"1", "starting_price":starting_price }),
+        )
+        .max_gas()
+        .deposit(NearToken::from_millinear(1400))
+        .transact()
+        .await?;
+
+    assert!(deploy_new_auction.is_failure());
+
+    Ok(())
+}
+
+async fn create_subaccount(
+    root: &near_workspaces::Account,
+    name: &str,
+) -> Result<near_workspaces::Account, Box<dyn std::error::Error>> {
+    let subaccount = root
+        .create_subaccount(name)
+        .initial_balance(TEN_NEAR)
+        .transact()
+        .await?
+        .unwrap();
+
+    Ok(subaccount)
+}
+
+async fn ft_transfer(
+    root: &near_workspaces::Account,
+    account: Account,
+    ft_contract: Contract,
+    transfer_amount: U128,
+) -> Result<ExecutionFinalResult, Box<dyn std::error::Error>> {
+    let transfer = root
+        .call(ft_contract.id(), "ft_transfer")
+        .args_json(serde_json::json!({
+            "receiver_id": account.id(),
+            "amount": transfer_amount
+        }))
+        .deposit(NearToken::from_yoctonear(1))
+        .transact()
+        .await?;
+    Ok(transfer)
+}
+
+async fn ft_balance_of(
+    ft_contract: &Contract,
+    account_id: &AccountId,
+) -> Result<U128, Box<dyn std::error::Error>> {
+    let result = ft_contract
+        .view("ft_balance_of")
+        .args_json(json!({"account_id": account_id}))
+        .await?
+        .json()?;
+
+    Ok(result)
+}
+
+async fn ft_transfer_call(
+    account: Account,
+    ft_contract_id: &AccountId,
+    receiver_id: &AccountId,
+    amount: U128,
+) -> Result<ExecutionFinalResult, Box<dyn std::error::Error>> {
+    let transfer = account
+        .call(ft_contract_id, "ft_transfer_call")
+        .args_json(serde_json::json!({
+            "receiver_id": receiver_id, "amount":amount, "msg": "0" }))
+        .deposit(NearToken::from_yoctonear(1))
+        .gas(Gas::from_tgas(300))
+        .transact()
+        .await?;
+    Ok(transfer)
+}