diff --git a/README.md b/README.md
index 6d6b50d..bc648bd 100644
--- a/README.md
+++ b/README.md
@@ -51,7 +51,7 @@ To setup your machine for development, please make sure you have the following:
 * Develop
   * FunC contracts are located in `contracts/*.fc`
     * Standalone root contracts are located in `contracts/*.fc`
-    * Imported utility code (when breaking code to multiple files) in `contracts/lib/*.fc`
+    * Imported utility code (when breaking code to multiple files) in `contracts/imports/*.fc`
     * This structure assists with build and deployment and assumed by the included scripts
   * Tests are located in `test/*.spec.ts`
 
diff --git a/build/build.ts b/build/build.ts
index bd3936d..954c4e1 100644
--- a/build/build.ts
+++ b/build/build.ts
@@ -2,7 +2,7 @@
 // It assumes that it is running from the repo root, and the directories are organized this way:
 //  ./build/ - directory for build artifacts exists
 //  ./contracts/*.fc - root contracts that are deployed separately are here
-//  ./contracts/lib/*.fc - utility code that should be imported as compilation dependency is here
+//  ./contracts/imports/*.fc - utility code that should be imported as compilation dependency is here
 
 import * as fs from "fs";
 import * as path from "path";
@@ -43,7 +43,7 @@ for (const rootContract of rootContracts) {
 
   // create one string with all source code from all merged files
   let sourceToCompile = "";
-  const importFiles = fg.sync(["contracts/lib/**/*.fc", "contracts/lib/**/*.func"]);
+  const importFiles = fg.sync(["contracts/imports/**/*.fc", "contracts/imports/**/*.func"]);
   for (const importFile of importFiles) {
     console.log(` - Adding import '${importFile}'`);
     sourceToCompile += `${fs.readFileSync(importFile).toString()}\n`;
diff --git a/contracts/lib/stdlib.fc b/contracts/imports/stdlib.fc
similarity index 100%
rename from contracts/lib/stdlib.fc
rename to contracts/imports/stdlib.fc
diff --git a/contracts/lib/utils.fc b/contracts/imports/utils.fc
similarity index 100%
rename from contracts/lib/utils.fc
rename to contracts/imports/utils.fc