diff --git a/Modules/CMakeAddFortranSubdirectory.cmake b/Modules/CMakeAddFortranSubdirectory.cmake
index 4e351a6fb..e92dcb47f 100644
--- a/Modules/CMakeAddFortranSubdirectory.cmake
+++ b/Modules/CMakeAddFortranSubdirectory.cmake
@@ -13,14 +13,17 @@
 # cmake_add_fortran_subdirectory(
 #   <subdir>                 # name of subdirectory
 #    PROJECT <project_name>  # project name in sbudir toplevel CMakeLists.txt
-#  ARCHIVE_DIR <dir>         # .lib location relative to root binary tree (lib)
-#  RUNTIME_DIR <dir>         # .dll location relative to root binary tree (bin)
+#  ARCHIVE_DIR <dir>         # dir where project places .lib files
+#  RUNTIME_DIR <dir>         # dir where project places .dll files
 #  LIBRARIES lib2 lib2    # names of libraries created and exported
 #  LINK_LIBRARIES            # link interface libraries for LIBRARIES
 #   LINK_LIBS <lib1>  <dep1> <dep2> ... <depN>
 #   LINK_LIBS <lib2> <dep1> <dep2> ... <depN>
 #  CMAKE_COMMAND_LINE        # extra command line flags to pass to cmake
 #   )
+# Relative paths in ARCHIVE_DIR and RUNTIME_DIR are interpreted with respect
+# to the build directory corresponding to the source directory in which the
+# function is invoked.
 #
 
 #=============================================================================
@@ -102,6 +105,12 @@ function(cmake_add_fortran_subdirectory subdir)
   set(libraries ${ARGS_LIBRARIES})
   # use the same directory that add_subdirectory would have used
   set(build_dir "${CMAKE_CURRENT_BINARY_DIR}/${subdir}")
+  foreach(dir_var library_dir binary_dir)
+    if(NOT IS_ABSOLUTE "${${dir_var}}")
+      get_filename_component(${dir_var}
+        "${CMAKE_CURRENT_BINARY_DIR}/${${dir_var}}" ABSOLUTE)
+    endif()
+  endforeach()
   # create build and configure wrapper scripts
   _setup_mingw_config_and_build(${source_dir})
   # create the external project
@@ -128,10 +137,8 @@ function(cmake_add_fortran_subdirectory subdir)
     add_library(${lib} SHARED IMPORTED)
     set_property(TARGET ${lib} APPEND PROPERTY IMPORTED_CONFIGURATIONS NOCONFIG)
     set_target_properties(${lib} PROPERTIES
-      IMPORTED_IMPLIB_NOCONFIG
-      "${build_dir}/${library_dir}/lib${lib}.lib"
-      IMPORTED_LOCATION_NOCONFIG
-      "${build_dir}/${binary_dir}/lib${lib}.dll"
+      IMPORTED_IMPLIB_NOCONFIG   "${library_dir}/lib${lib}.lib"
+      IMPORTED_LOCATION_NOCONFIG "${binary_dir}/lib${lib}.dll"
       )
     add_dependencies(${lib} ${project_name}_build)
   endforeach()
diff --git a/Modules/CMakeAddFortranSubdirectory/config_mingw.cmake.in b/Modules/CMakeAddFortranSubdirectory/config_mingw.cmake.in
index 96141da6d..97f67693a 100644
--- a/Modules/CMakeAddFortranSubdirectory/config_mingw.cmake.in
+++ b/Modules/CMakeAddFortranSubdirectory/config_mingw.cmake.in
@@ -1,8 +1,9 @@
 set(ENV{PATH} "@MINGW_PATH@\;$ENV{PATH}")
+set(CMAKE_COMMAND_LINE "@ARGS_CMAKE_COMMAND_LINE@")
 execute_process(
   COMMAND "@CMAKE_COMMAND@" "-GMinGW Makefiles"
   -DCMAKE_Fortran_COMPILER:PATH=@MINGW_GFORTRAN@
   -DBUILD_SHARED_LIBS=ON
   -DCMAKE_GNUtoMS=ON
-  @ARGS_CMAKE_COMMAND_LINE@
+  ${CMAKE_COMMAND_LINE}
   "@source_dir@")
diff --git a/Tests/VSGNUFortran/CMakeLists.txt b/Tests/VSGNUFortran/CMakeLists.txt
index 2e527f9fe..422350a5c 100644
--- a/Tests/VSGNUFortran/CMakeLists.txt
+++ b/Tests/VSGNUFortran/CMakeLists.txt
@@ -1,5 +1,10 @@
 cmake_minimum_required(VERSION 2.8)
 project(VSGNUFortran)
+
+set(CMAKE_RUNTIME_OUTPUT_DIRECTORY "${PROJECT_BINARY_DIR}/bin")
+set(CMAKE_ARCHIVE_OUTPUT_DIRECTORY "${PROJECT_BINARY_DIR}/lib")
+set(CMAKE_LIBRARY_OUTPUT_DIRECTORY "${PROJECT_BINARY_DIR}/lib")
+
 # force the executable to be put out of Debug/Release dir
 # because gmake build of fortran will not be in a config
 # directory, and for easier testing we want the exe and .dll
@@ -7,14 +12,9 @@ project(VSGNUFortran)
 if(CMAKE_CONFIGURATION_TYPES)
   foreach(config ${CMAKE_CONFIGURATION_TYPES})
     string(TOUPPER "${config}" config)
-    set(CMAKE_ARCHIVE_OUTPUT_DIRECTORY_${config}
-      "${PROJECT_BINARY_DIR}/bin")
     set(CMAKE_RUNTIME_OUTPUT_DIRECTORY_${config}
-      "${PROJECT_BINARY_DIR}/bin")
+      ${CMAKE_RUNTIME_OUTPUT_DIRECTORY})
   endforeach()
-else()
-  set(CMAKE_RUNTIME_OUTPUT_DIRECTORY ${PROJECT_BINARY_DIR}/bin)
-  set(CMAKE_ARCHIVE_OUTPUT_DIRECTORY ${PROJECT_BINARY_DIR}/bin)
 endif()
 
 include(CMakeAddFortranSubdirectory)
@@ -22,11 +22,13 @@ include(CMakeAddFortranSubdirectory)
 # the subdir is fortran, the project is FortranHello
 cmake_add_fortran_subdirectory(fortran
   PROJECT FortranHello  # project name in toplevel CMakeLists.txt
-  ARCHIVE_DIR ../bin # .lib location relative to root binary tree
-  RUNTIME_DIR ../bin # .dll location relative to root binary tree
+  ARCHIVE_DIR ${CMAKE_ARCHIVE_OUTPUT_DIRECTORY}
+  RUNTIME_DIR bin # ${CMAKE_RUNTIME_OUTPUT_DIRECTORY}
   LIBRARIES hello world # target libraries created
-  CMAKE_COMMAND_LINE -DEXECUTABLE_OUTPUT_PATH=../bin
-                     -DLIBRARY_OUTPUT_PATH=../bin
+  CMAKE_COMMAND_LINE
+    -DCMAKE_RUNTIME_OUTPUT_DIRECTORY=${CMAKE_RUNTIME_OUTPUT_DIRECTORY}
+    -DCMAKE_ARCHIVE_OUTPUT_DIRECTORY=${CMAKE_ARCHIVE_OUTPUT_DIRECTORY}
+    -DCMAKE_LIBRARY_OUTPUT_DIRECTORY=${CMAKE_LIBRARY_OUTPUT_DIRECTORY}
   LINK_LIBRARIES  # link interface libraries
    LINK_LIBS hello world  # hello needs world to link
    )