diff --git a/cargo-concordium/Cargo.lock b/cargo-concordium/Cargo.lock
index 69492445..ff881140 100644
--- a/cargo-concordium/Cargo.lock
+++ b/cargo-concordium/Cargo.lock
@@ -299,7 +299,7 @@ dependencies = [
 
 [[package]]
 name = "cargo-concordium"
-version = "3.1.1"
+version = "3.1.2"
 dependencies = [
  "ansi_term",
  "anyhow",
diff --git a/cargo-concordium/Cargo.toml b/cargo-concordium/Cargo.toml
index 683951b1..e44ee51d 100644
--- a/cargo-concordium/Cargo.toml
+++ b/cargo-concordium/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "cargo-concordium"
-version = "3.1.1"
+version = "3.1.2"
 authors = ["Concordium <developers@concordium.com>"]
 edition = "2021"
 license-file = "../LICENSE"
diff --git a/cargo-concordium/src/build.rs b/cargo-concordium/src/build.rs
index d85be0a7..0f5410e0 100644
--- a/cargo-concordium/src/build.rs
+++ b/cargo-concordium/src/build.rs
@@ -495,7 +495,11 @@ pub fn build_contract(
         } = build_in_container(
             image,
             PackageData {
-                package_target_dir:     metadata.target_directory.as_std_path(),
+                package_target_dir:     metadata
+                    .target_directory
+                    .as_std_path()
+                    .canonicalize()?
+                    .as_path(),
                 package_root_path:      package_root_path.as_path(),
                 package_version_string: &package_version_string,
             },