diff --git a/.gitignore b/.gitignore
index 67d37f32dd8..a178b6ddac8 100755
--- a/.gitignore
+++ b/.gitignore
@@ -25,3 +25,6 @@
 
 # Version file we automatically make
 /pkg/version/autogenerated.go
+
+# compiled binaries in third_party
+/third_party/pkg
diff --git a/cluster/kubecfg.sh b/cluster/kubecfg.sh
index fb5efd6f87a..8e70e92f818 100755
--- a/cluster/kubecfg.sh
+++ b/cluster/kubecfg.sh
@@ -19,7 +19,7 @@
 source $(dirname $0)/kube-env.sh
 source $(dirname $0)/$KUBERNETES_PROVIDER/util.sh
 
-CLOUDCFG=$(dirname $0)/../output/go/kubecfg
+CLOUDCFG=$(dirname $0)/../output/go/bin/kubecfg
 if [ ! -x $CLOUDCFG ]; then
   echo "Could not find kubecfg binary. Run hack/build-go.sh to build it."
   exit 1
diff --git a/hack/build-go.sh b/hack/build-go.sh
index 00b5a40c263..1d545d10370 100755
--- a/hack/build-go.sh
+++ b/hack/build-go.sh
@@ -31,7 +31,4 @@ if [ $# -gt 0 ]; then
   BINARIES="$@"
 fi
 
-for b in ${BINARIES}; do
-  echo "+++ Building ${b}"
-  go build "${KUBE_GO_PACKAGE}/${b}"
-done
+go install $(for b in $BINARIES; do echo "${KUBE_GO_PACKAGE}"/${b}; done)
diff --git a/hack/config-go.sh b/hack/config-go.sh
index e25421b374a..c96079f59f7 100755
--- a/hack/config-go.sh
+++ b/hack/config-go.sh
@@ -61,4 +61,7 @@ KUBE_GO_PACKAGE_DIR="${GOPATH}/src/${KUBE_GO_PACKAGE}"
   rm "${KUBE_GO_PACKAGE_DIR}" >/dev/null 2>&1 || true
   ln -s "${KUBE_REPO_ROOT}" "${KUBE_GO_PACKAGE_DIR}"
 )
+
+# unset GOBIN in case it already exsit in the current session
+unset GOBIN
 export GOPATH="${KUBE_TARGET}:${KUBE_REPO_ROOT}/third_party"
diff --git a/hack/integration-test.sh b/hack/integration-test.sh
index bfd6b71ce98..906a1614149 100755
--- a/hack/integration-test.sh
+++ b/hack/integration-test.sh
@@ -38,6 +38,6 @@ ETCD_PID=$!
 
 sleep 5
 
-$(dirname $0)/../output/go/integration
+$(dirname $0)/../output/go/bin/integration
 
 kill $ETCD_PID
diff --git a/hack/local-up-cluster.sh b/hack/local-up-cluster.sh
index f7f4c28dcb5..a7e7464e5fb 100755
--- a/hack/local-up-cluster.sh
+++ b/hack/local-up-cluster.sh
@@ -49,7 +49,7 @@ set +e
 API_PORT=8080
 KUBELET_PORT=10250
 
-GO_OUT=$(dirname $0)/../output/go
+GO_OUT=$(dirname $0)/../output/go/bin
 
 APISERVER_LOG=/tmp/apiserver.log
 ${GO_OUT}/apiserver \