diff --git a/CHANGELOG.md b/CHANGELOG.md
index 01e752fa7..940f839b1 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,8 @@
 
 ## [MAJOR.MINOR.PATCH] - YYYY-MM-DD
 
+- Set conditions on errors: `Preconditions`, `CreateOrUpdate`, `Delete`. Thanks to @atarax
+- Fix object updates lost when reconcile returns before the object is committed  
 - Add `Kafka` field `userConfig.kafka.transaction_partition_verification_enable`, type `boolean`: Enable
   verification that checks that the partition has been added to the transaction before writing transactional
   records to the partition
diff --git a/Makefile b/Makefile
index 40cca3dac..899d25e92 100644
--- a/Makefile
+++ b/Makefile
@@ -104,7 +104,7 @@ boilerplate: controller-gen ## Generate code containing DeepCopy, DeepCopyInto,
 	$(CONTROLLER_GEN) object:headerFile="hack/boilerplate.go.txt" paths="./..."
 
 .PHONY: generate
-generate: boilerplate userconfigs imports manifests docs charts
+generate: userconfigs boilerplate imports manifests docs charts
 
 .PHONY: fmt
 fmt: ## Run go fmt against code.
diff --git a/api/v1alpha1/userconfig/service/kafka/zz_generated.deepcopy.go b/api/v1alpha1/userconfig/service/kafka/zz_generated.deepcopy.go
index 474ce48cf..f581d73d9 100644
--- a/api/v1alpha1/userconfig/service/kafka/zz_generated.deepcopy.go
+++ b/api/v1alpha1/userconfig/service/kafka/zz_generated.deepcopy.go
@@ -245,6 +245,11 @@ func (in *Kafka) DeepCopyInto(out *Kafka) {
 		*out = new(int)
 		**out = **in
 	}
+	if in.TransactionPartitionVerificationEnable != nil {
+		in, out := &in.TransactionPartitionVerificationEnable, &out.TransactionPartitionVerificationEnable
+		*out = new(bool)
+		**out = **in
+	}
 	if in.TransactionRemoveExpiredTransactionCleanupIntervalMs != nil {
 		in, out := &in.TransactionRemoveExpiredTransactionCleanupIntervalMs, &out.TransactionRemoveExpiredTransactionCleanupIntervalMs
 		*out = new(int)
diff --git a/controllers/basic_controller.go b/controllers/basic_controller.go
index 4389695b9..e85c28308 100644
--- a/controllers/basic_controller.go
+++ b/controllers/basic_controller.go
@@ -2,15 +2,16 @@ package controllers
 
 import (
 	"context"
+	"errors"
 	"fmt"
 	"strings"
 	"time"
 
 	"github.com/aiven/aiven-go-client/v2"
 	"github.com/go-logr/logr"
-	"github.com/hashicorp/go-multierror"
-	"github.com/pkg/errors"
 	corev1 "k8s.io/api/core/v1"
+	"k8s.io/apimachinery/pkg/api/equality"
+	"k8s.io/apimachinery/pkg/api/meta"
 	"k8s.io/apimachinery/pkg/runtime"
 	"k8s.io/apimachinery/pkg/types"
 	"k8s.io/client-go/tools/record"
@@ -126,14 +127,17 @@ func (c *Controller) reconcileInstance(ctx context.Context, req ctrl.Request, h
 		return ctrl.Result{}, fmt.Errorf("cannot initialize aiven client: %w", err)
 	}
 
-	return instanceReconcilerHelper{
+	helper := instanceReconcilerHelper{
 		avn: avn,
 		k8s: c.Client,
 		h:   h,
 		log: instanceLogger,
 		s:   clientAuthSecret,
 		rec: c.Recorder,
-	}.reconcileInstance(ctx, o)
+	}
+
+	requeue, err := helper.reconcile(ctx, o)
+	return ctrl.Result{Requeue: requeue, RequeueAfter: requeueTimeout}, err
 }
 
 // a helper that closes over all instance specific fields
@@ -157,53 +161,73 @@ type instanceReconcilerHelper struct {
 	rec record.EventRecorder
 }
 
-func (i instanceReconcilerHelper) reconcileInstance(ctx context.Context, o client.Object) (ctrl.Result, error) {
-	i.log.Info("reconciling instance")
-	i.rec.Event(o, corev1.EventTypeNormal, eventReconciliationStarted, "starting reconciliation")
-
-	var err error
-
-	defer func() {
-		// Order matters.
-		// First need to update the object, and then update the status.
-		// So dependent resources won't see READY before it has been updated with new values
-		// Clone is used so update won't overwrite in-memory values
-		// We need to this on outer level because we otherwise wouldn't set status-conditions
-		// properly when preconditions fail
-		clone := o.DeepCopyObject().(client.Object)
-		err = multierror.Append(err, i.k8s.Update(ctx, clone))
-
-		// Original object has been updated
-		o.SetResourceVersion(clone.GetResourceVersion())
-
-		// It's ready to cast its status
-		err = multierror.Append(err, i.k8s.Status().Update(ctx, o))
-		err = err.(*multierror.Error).ErrorOrNil()
-	}()
-
+func (i *instanceReconcilerHelper) reconcile(ctx context.Context, o v1alpha1.AivenManagedObject) (bool, error) {
+	// Deletion
 	if isMarkedForDeletion(o) {
 		if controllerutil.ContainsFinalizer(o, instanceDeletionFinalizer) {
 			return i.finalize(ctx, o)
 		}
-		return ctrl.Result{}, nil
+		return false, nil
+	}
+
+	// Create or update.
+	// Even if reconcile fails, we need to update the object in kube
+	// to save conditions and other data.
+	// So we don't exit on error.
+	orig := o.DeepCopyObject().(v1alpha1.AivenManagedObject)
+	requeue, err := i.reconcileInstance(ctx, o)
+	if equality.Semantic.DeepEqual(orig, o) {
+		return requeue, err
+	}
+
+	// Order matters.
+	// First need to update the object, and then update the status.
+	// So dependent resources won't see READY before it has been updated with new values
+	// The remote object can have a newer version triggered by the secret.
+	// So we take its number and update the object
+	latest := o.DeepCopyObject().(client.Object)
+	err = i.k8s.Get(ctx, client.ObjectKeyFromObject(latest), latest)
+	if err != nil {
+		return true, err
 	}
 
+	// When updated, object status is vanished.
+	// So we waste a copy for that,
+	// while the original object must have all the fields updated in runtime
+	clone := o.DeepCopyObject().(client.Object)
+	clone.SetResourceVersion(latest.GetResourceVersion())
+	errUpdate := i.k8s.Update(ctx, clone)
+
+	// Now we can update the status
+	o.SetResourceVersion(clone.GetResourceVersion())
+	errStatus := i.k8s.Status().Update(ctx, o)
+	errMerged := errors.Join(err, errUpdate, errStatus)
+	if errMerged != nil {
+		return true, errMerged
+	}
+
+	return requeue, nil
+}
+
+func (i *instanceReconcilerHelper) reconcileInstance(ctx context.Context, o v1alpha1.AivenManagedObject) (bool, error) {
+	i.log.Info("reconciling instance")
+	i.rec.Event(o, corev1.EventTypeNormal, eventReconciliationStarted, "starting reconciliation")
+
 	// Add finalizers to an instance and associated secret, only if they haven't
 	// been added in the previous reconciliation loops
 	if i.s != nil {
 		if !controllerutil.ContainsFinalizer(i.s, secretProtectionFinalizer) {
 			i.log.Info("adding finalizer to secret")
 			if err := addFinalizer(ctx, i.k8s, i.s, secretProtectionFinalizer); err != nil {
-				return ctrl.Result{}, fmt.Errorf("unable to add finalizer to secret: %w", err)
+				return false, fmt.Errorf("unable to add finalizer to secret: %w", err)
 			}
 		}
 	}
+
 	if !controllerutil.ContainsFinalizer(o, instanceDeletionFinalizer) {
+		// Adds finalizer. The commit is performed in the outer function
 		i.log.Info("adding finalizer to instance")
-		if err := addFinalizer(ctx, i.k8s, o, instanceDeletionFinalizer); err != nil {
-			i.rec.Eventf(o, corev1.EventTypeWarning, eventUnableToAddFinalizer, err.Error())
-			return ctrl.Result{}, fmt.Errorf("unable to add finalizer to instance: %w", err)
-		}
+		controllerutil.AddFinalizer(o, instanceDeletionFinalizer)
 		i.rec.Event(o, corev1.EventTypeNormal, eventAddedFinalizer, "instance finalizer added")
 	}
 
@@ -212,58 +236,51 @@ func (i instanceReconcilerHelper) reconcileInstance(ctx context.Context, o clien
 	refs, err := i.getObjectRefs(ctx, o)
 	if err != nil {
 		i.log.Info(fmt.Sprintf("one or more references can't be found yet: %s", err))
-		return ctrl.Result{Requeue: true, RequeueAfter: requeueTimeout}, nil
+		return true, nil
 	}
 
 	requeue, err := i.checkPreconditions(ctx, o, refs)
 	if requeue {
-		// It must be possible to return requeue and error by design.
-		// By the time this comment created, there is no such case in checkPreconditions()
-		return ctrl.Result{Requeue: true, RequeueAfter: requeueTimeout}, err
+		return true, err
 	}
+
 	if err != nil {
-		return ctrl.Result{}, err
+		meta.SetStatusCondition(o.Conditions(), getErrorCondition(errConditionPreconditions, err))
+		return false, err
 	}
 
 	if !isAlreadyProcessed(o) {
 		i.rec.Event(o, corev1.EventTypeNormal, eventCreateOrUpdatedAtAiven, "about to create instance at aiven")
 		if err := i.createOrUpdateInstance(ctx, o, refs); err != nil {
 			i.rec.Event(o, corev1.EventTypeWarning, eventUnableToCreateOrUpdateAtAiven, err.Error())
-			return ctrl.Result{}, fmt.Errorf("unable to create or update instance at aiven: %w", err)
+			return false, fmt.Errorf("unable to create or update instance at aiven: %w", err)
 		}
 
 		i.rec.Event(o, corev1.EventTypeNormal, eventCreatedOrUpdatedAtAiven, "instance was created at aiven but may not be running yet")
 	}
 
 	i.rec.Event(o, corev1.EventTypeNormal, eventWaitingForTheInstanceToBeRunning, "waiting for the instance to be running")
-	isRunning, err := i.updateInstanceStateAndSecretUntilRunning(ctx, o)
+	err = i.updateInstanceStateAndSecretUntilRunning(ctx, o)
 	if err != nil {
 		if aiven.IsNotFound(err) {
-			return ctrl.Result{
-				Requeue:      true,
-				RequeueAfter: requeueTimeout,
-			}, nil
+			return true, nil
 		}
 
 		i.rec.Event(o, corev1.EventTypeWarning, eventUnableToWaitForInstanceToBeRunning, err.Error())
-		return ctrl.Result{}, fmt.Errorf("unable to wait until instance is running: %w", err)
+		return false, fmt.Errorf("unable to wait until instance is running: %w", err)
 	}
 
-	if !isRunning {
+	if !IsAlreadyRunning(o) {
 		i.log.Info("instance is not yet running, triggering requeue")
-		return ctrl.Result{
-			Requeue:      true,
-			RequeueAfter: requeueTimeout,
-		}, nil
+		return true, nil
 	}
 
 	i.rec.Event(o, corev1.EventTypeNormal, eventInstanceIsRunning, "instance is in a RUNNING state")
 	i.log.Info("instance was successfully reconciled")
-
-	return ctrl.Result{}, nil
+	return false, nil
 }
 
-func (i instanceReconcilerHelper) checkPreconditions(ctx context.Context, o client.Object, refs []client.Object) (bool, error) {
+func (i *instanceReconcilerHelper) checkPreconditions(ctx context.Context, o client.Object, refs []client.Object) (bool, error) {
 	i.rec.Event(o, corev1.EventTypeNormal, eventWaitingForPreconditions, "waiting for preconditions of the instance")
 
 	// Checks references
@@ -293,7 +310,7 @@ func (i instanceReconcilerHelper) checkPreconditions(ctx context.Context, o clie
 	return false, nil
 }
 
-func (i instanceReconcilerHelper) getObjectRefs(ctx context.Context, o client.Object) ([]client.Object, error) {
+func (i *instanceReconcilerHelper) getObjectRefs(ctx context.Context, o client.Object) ([]client.Object, error) {
 	refsObj, ok := o.(refsObject)
 	if !ok {
 		return nil, nil
@@ -330,7 +347,7 @@ func (i instanceReconcilerHelper) getObjectRefs(ctx context.Context, o client.Ob
 // finalize runs finalization logic. If the finalization logic fails, don't remove the finalizer so
 // that we can retry during the next reconciliation. When applicable, it retrieves an associated object that
 // has to be deleted from Kubernetes, and it could be a secret associated with an instance.
-func (i instanceReconcilerHelper) finalize(ctx context.Context, o client.Object) (ctrl.Result, error) {
+func (i *instanceReconcilerHelper) finalize(ctx context.Context, o v1alpha1.AivenManagedObject) (bool, error) {
 	i.rec.Event(o, corev1.EventTypeNormal, eventTryingToDeleteAtAiven, "trying to delete instance at aiven")
 
 	var err error
@@ -349,6 +366,9 @@ func (i instanceReconcilerHelper) finalize(ctx context.Context, o client.Object)
 
 	if deletionPolicy == deletionPolicyDelete {
 		finalised, err = i.h.delete(ctx, i.avn, o)
+		if err != nil {
+			meta.SetStatusCondition(o.Conditions(), getErrorCondition(errConditionDelete, err))
+		}
 	}
 
 	// There are dependencies on Aiven side, resets error, so it goes for requeue
@@ -367,24 +387,21 @@ func (i instanceReconcilerHelper) finalize(ctx context.Context, o client.Object)
 			finalised = true
 		} else if aiven.IsNotFound(err) {
 			i.rec.Event(o, corev1.EventTypeWarning, eventUnableToDeleteAtAiven, err.Error())
-			return ctrl.Result{}, fmt.Errorf("unable to delete instance at aiven: %w", err)
+			return false, fmt.Errorf("unable to delete instance at aiven: %w", err)
 		} else if isAivenServerError(err) {
 			// If failed to delete, retries
 			i.log.Info(fmt.Sprintf("unable to delete instance at aiven: %s", err))
 			err = nil
 		} else {
 			i.rec.Event(o, corev1.EventTypeWarning, eventUnableToDelete, err.Error())
-			return ctrl.Result{}, fmt.Errorf("unable to delete instance: %w", err)
+			return false, fmt.Errorf("unable to delete instance: %w", err)
 		}
 	}
 
 	// checking if instance was finalized, if not triggering a requeue
 	if !finalised {
 		i.log.Info("instance is not yet deleted at aiven, triggering requeue")
-		return ctrl.Result{
-			Requeue:      true,
-			RequeueAfter: requeueTimeout,
-		}, nil
+		return true, nil
 	}
 
 	i.log.Info("instance was successfully deleted at aiven, removing finalizer")
@@ -393,28 +410,29 @@ func (i instanceReconcilerHelper) finalize(ctx context.Context, o client.Object)
 	// remove finalizer, once all finalizers have been removed, the object will be deleted.
 	if err := removeFinalizer(ctx, i.k8s, o, instanceDeletionFinalizer); err != nil {
 		i.rec.Event(o, corev1.EventTypeWarning, eventUnableToDeleteFinalizer, err.Error())
-		return ctrl.Result{}, fmt.Errorf("unable to remove finalizer: %w", err)
+		return false, fmt.Errorf("unable to remove finalizer: %w", err)
 	}
 
 	i.log.Info("finalizer was removed, instance is deleted")
-	return ctrl.Result{}, nil
+	return false, nil
 }
 
 // isInvalidTokenError checks if the error is related to invalid token
-func (i instanceReconcilerHelper) isInvalidTokenError(err error) bool {
+func (i *instanceReconcilerHelper) isInvalidTokenError(err error) bool {
 	// When an instance was created but pointing to an invalid API token
 	// and no generation was ever processed, allow deleting such instance
 	msg := err.Error()
 	return strings.Contains(msg, "Invalid token") || strings.Contains(msg, "Missing (expired) db token")
 }
 
-func (i instanceReconcilerHelper) createOrUpdateInstance(ctx context.Context, o client.Object, refs []client.Object) error {
+func (i *instanceReconcilerHelper) createOrUpdateInstance(ctx context.Context, o v1alpha1.AivenManagedObject, refs []client.Object) error {
 	i.log.Info("generation wasn't processed, creation or updating instance on aiven side")
 	a := o.GetAnnotations()
 	delete(a, processedGenerationAnnotation)
 	delete(a, instanceIsRunningAnnotation)
 
 	if err := i.h.createOrUpdate(ctx, i.avn, o, refs); err != nil {
+		meta.SetStatusCondition(o.Conditions(), getErrorCondition(errConditionCreateOrUpdate, err))
 		return fmt.Errorf("unable to create or update aiven instance: %w", err)
 	}
 
@@ -426,25 +444,18 @@ func (i instanceReconcilerHelper) createOrUpdateInstance(ctx context.Context, o
 	return nil
 }
 
-func (i instanceReconcilerHelper) updateInstanceStateAndSecretUntilRunning(ctx context.Context, o client.Object) (bool, error) {
+func (i *instanceReconcilerHelper) updateInstanceStateAndSecretUntilRunning(ctx context.Context, o client.Object) error {
 	i.log.Info("checking if instance is ready")
 
-	serviceSecret, err := i.h.get(ctx, i.avn, o)
-	if err != nil {
-		return false, err
-	} else if serviceSecret != nil {
-		if err = i.createOrUpdateSecret(ctx, o, serviceSecret); err != nil {
-			return false, fmt.Errorf("unable to create or update aiven secret: %w", err)
-		}
+	secret, err := i.h.get(ctx, i.avn, o)
+	if secret == nil || err != nil {
+		return err
 	}
-	return IsAlreadyRunning(o), err
-
-}
 
-func (i instanceReconcilerHelper) createOrUpdateSecret(ctx context.Context, owner client.Object, want *corev1.Secret) error {
-	_, err := controllerutil.CreateOrUpdate(ctx, i.k8s, want, func() error {
-		return ctrl.SetControllerReference(owner, want, i.k8s.Scheme())
+	_, err = controllerutil.CreateOrUpdate(ctx, i.k8s, secret, func() error {
+		return controllerutil.SetControllerReference(o, secret, i.k8s.Scheme())
 	})
+
 	return err
 }
 
diff --git a/controllers/clickhouseuser_controller.go b/controllers/clickhouseuser_controller.go
index 77631eff7..7217fb188 100644
--- a/controllers/clickhouseuser_controller.go
+++ b/controllers/clickhouseuser_controller.go
@@ -53,10 +53,6 @@ func (h *clickhouseUserHandler) createOrUpdate(ctx context.Context, avn *aiven.C
 		return err
 	}
 
-	if err != nil && !aiven.IsAlreadyExists(err) {
-		return fmt.Errorf("cannot createOrUpdate clickhouse user on aiven side: %w", err)
-	}
-
 	user.Status.UUID = r.User.UUID
 
 	meta.SetStatusCondition(&user.Status.Conditions,
diff --git a/controllers/common.go b/controllers/common.go
index 379db0680..2c724b5f0 100644
--- a/controllers/common.go
+++ b/controllers/common.go
@@ -35,6 +35,14 @@ const (
 	deletionPolicyDelete     = "Delete"
 )
 
+type errCondition string
+
+const (
+	errConditionDelete         errCondition = "Delete"
+	errConditionPreconditions  errCondition = "Preconditions"
+	errConditionCreateOrUpdate errCondition = "CreateOrUpdate"
+)
+
 var (
 	version                    = "dev"
 	errTerminationProtectionOn = errors.New("termination protection is on")
@@ -71,11 +79,11 @@ func getRunningCondition(status metav1.ConditionStatus, reason, message string)
 	}
 }
 
-func getErrorCondition(reason string, err error) metav1.Condition {
+func getErrorCondition(reason errCondition, err error) metav1.Condition {
 	return metav1.Condition{
 		Type:    conditionTypeError,
 		Status:  metav1.ConditionUnknown,
-		Reason:  reason,
+		Reason:  string(reason),
 		Message: err.Error(),
 	}
 }
diff --git a/controllers/connectionpool_controller.go b/controllers/connectionpool_controller.go
index df6472575..d3843a8a6 100644
--- a/controllers/connectionpool_controller.go
+++ b/controllers/connectionpool_controller.go
@@ -48,7 +48,6 @@ func (h ConnectionPoolHandler) createOrUpdate(ctx context.Context, avn *aiven.Cl
 
 	exists, err := h.exists(ctx, avn, cp)
 	if err != nil {
-		meta.SetStatusCondition(&cp.Status.Conditions, getErrorCondition("CheckExists", err))
 		return err
 	}
 	var reason string
@@ -62,7 +61,6 @@ func (h ConnectionPoolHandler) createOrUpdate(ctx context.Context, avn *aiven.Cl
 				Username: optionalStringPointer(cp.Spec.Username),
 			})
 		if err != nil && !aiven.IsAlreadyExists(err) {
-			meta.SetStatusCondition(&cp.Status.Conditions, getErrorCondition("Create", err))
 			return err
 		}
 		reason = "Created"
@@ -75,7 +73,6 @@ func (h ConnectionPoolHandler) createOrUpdate(ctx context.Context, avn *aiven.Cl
 				Username: optionalStringPointer(cp.Spec.Username),
 			})
 		if err != nil {
-			meta.SetStatusCondition(&cp.Status.Conditions, getErrorCondition("Update", err))
 			return err
 		}
 		reason = "Updated"
@@ -103,7 +100,6 @@ func (h ConnectionPoolHandler) delete(ctx context.Context, avn *aiven.Client, ob
 
 	err = avn.ConnectionPools.Delete(ctx, cp.Spec.Project, cp.Spec.ServiceName, cp.Name)
 	if err != nil && !aiven.IsNotFound(err) {
-		meta.SetStatusCondition(&cp.Status.Conditions, getErrorCondition("Delete", err))
 		return false, err
 	}
 
@@ -204,7 +200,6 @@ func (h ConnectionPoolHandler) checkPreconditions(ctx context.Context, avn *aive
 
 	check, err := checkServiceIsRunning(ctx, avn, cp.Spec.Project, cp.Spec.ServiceName)
 	if err != nil {
-		meta.SetStatusCondition(&cp.Status.Conditions, getErrorCondition("Preconditions", err))
 		return false, err
 	}
 
diff --git a/controllers/database_controller.go b/controllers/database_controller.go
index ebb2eb66c..b782108ef 100644
--- a/controllers/database_controller.go
+++ b/controllers/database_controller.go
@@ -47,7 +47,6 @@ func (h DatabaseHandler) createOrUpdate(ctx context.Context, avn *aiven.Client,
 	exists, err := h.exists(ctx, avn, db)
 
 	if err != nil {
-		meta.SetStatusCondition(&db.Status.Conditions, getErrorCondition("CheckExists", err))
 		return err
 	}
 
@@ -58,7 +57,6 @@ func (h DatabaseHandler) createOrUpdate(ctx context.Context, avn *aiven.Client,
 			LcType:    db.Spec.LcCtype,
 		})
 		if err != nil {
-			meta.SetStatusCondition(&db.Status.Conditions, getErrorCondition("CreateOrUpdate", err))
 			return fmt.Errorf("cannot create database on Aiven side: %w", err)
 		}
 	}
@@ -93,7 +91,6 @@ func (h DatabaseHandler) delete(ctx context.Context, avn *aiven.Client, obj clie
 		db.Spec.ServiceName,
 		db.Name)
 	if err != nil && !aiven.IsNotFound(err) {
-		meta.SetStatusCondition(&db.Status.Conditions, getErrorCondition("Delete", err))
 		return false, err
 	}
 
@@ -138,11 +135,7 @@ func (h DatabaseHandler) checkPreconditions(ctx context.Context, avn *aiven.Clie
 	meta.SetStatusCondition(&db.Status.Conditions,
 		getInitializedCondition("Preconditions", "Checking preconditions"))
 
-	running, err := checkServiceIsRunning(ctx, avn, db.Spec.Project, db.Spec.ServiceName)
-	if err != nil {
-		meta.SetStatusCondition(&db.Status.Conditions, getErrorCondition("Preconditions", err))
-	}
-	return running, err
+	return checkServiceIsRunning(ctx, avn, db.Spec.Project, db.Spec.ServiceName)
 }
 
 func (h DatabaseHandler) convert(i client.Object) (*v1alpha1.Database, error) {
diff --git a/controllers/generic_service_handler.go b/controllers/generic_service_handler.go
index d79d02bd9..56d6318bf 100644
--- a/controllers/generic_service_handler.go
+++ b/controllers/generic_service_handler.go
@@ -45,7 +45,6 @@ func (h *genericServiceHandler) createOrUpdate(ctx context.Context, avn *aiven.C
 	_, err = avn.Services.Get(ctx, spec.Project, ometa.Name)
 	exists := err == nil
 	if !exists && !aiven.IsNotFound(err) {
-		meta.SetStatusCondition(&o.getServiceStatus().Conditions, getErrorCondition("CheckExists", err))
 		return fmt.Errorf("failed to fetch service: %w", err)
 	}
 
@@ -81,14 +80,12 @@ func (h *genericServiceHandler) createOrUpdate(ctx context.Context, avn *aiven.C
 
 		_, err = avn.Services.Create(ctx, spec.Project, req)
 		if err != nil {
-			meta.SetStatusCondition(&o.getServiceStatus().Conditions, getErrorCondition("Create", err))
 			return fmt.Errorf("failed to create service: %w", err)
 		}
 	} else {
 		reason = "Updated"
 		userConfig, err := UpdateUserConfiguration(o.getUserConfig())
 		if err != nil {
-			meta.SetStatusCondition(&o.getServiceStatus().Conditions, getErrorCondition("Update", err))
 			return err
 		}
 
@@ -104,7 +101,6 @@ func (h *genericServiceHandler) createOrUpdate(ctx context.Context, avn *aiven.C
 		}
 		_, err = avn.Services.Update(ctx, spec.Project, ometa.Name, req)
 		if err != nil {
-			meta.SetStatusCondition(&o.getServiceStatus().Conditions, getErrorCondition("Update", err))
 			return fmt.Errorf("failed to update service: %w", err)
 		}
 	}
@@ -120,7 +116,6 @@ func (h *genericServiceHandler) createOrUpdate(ctx context.Context, avn *aiven.C
 	}
 	_, err = avn.ServiceTags.Set(ctx, spec.Project, ometa.Name, req)
 	if err != nil {
-		meta.SetStatusCondition(&o.getServiceStatus().Conditions, getErrorCondition("Update", err))
 		return fmt.Errorf("failed to update tags: %w", err)
 	}
 
@@ -154,7 +149,6 @@ func (h *genericServiceHandler) delete(ctx context.Context, avn *aiven.Client, o
 		return true, nil
 	}
 
-	meta.SetStatusCondition(&o.getServiceStatus().Conditions, getErrorCondition("Delete", err))
 	return false, fmt.Errorf("failed to delete service in Aiven: %w", err)
 }
 
@@ -197,11 +191,8 @@ func (h *genericServiceHandler) checkPreconditions(ctx context.Context, avn *aiv
 		// If not, the wrapper controller will try later
 		if s.IntegrationType == "read_replica" {
 			r, err := checkServiceIsRunning(ctx, avn, spec.Project, s.SourceServiceName)
-			if err != nil {
-				meta.SetStatusCondition(&o.getServiceStatus().Conditions, getErrorCondition("Preconditions", err))
-			}
-			if !(r && err == nil) {
-				return false, nil
+			if !r || err != nil {
+				return false, err
 			}
 		}
 	}
diff --git a/controllers/kafkaacl_controller.go b/controllers/kafkaacl_controller.go
index 8db6e5759..9e6af9ad6 100644
--- a/controllers/kafkaacl_controller.go
+++ b/controllers/kafkaacl_controller.go
@@ -48,7 +48,6 @@ func (h KafkaACLHandler) createOrUpdate(ctx context.Context, avn *aiven.Client,
 	// Tries to delete it instead
 	_, err = h.delete(ctx, avn, obj)
 	if err != nil {
-		meta.SetStatusCondition(&acl.Status.Conditions, getErrorCondition("Delete", err))
 		return err
 	}
 
@@ -161,11 +160,7 @@ func (h KafkaACLHandler) checkPreconditions(ctx context.Context, avn *aiven.Clie
 	meta.SetStatusCondition(&acl.Status.Conditions,
 		getInitializedCondition("Preconditions", "Checking preconditions"))
 
-	running, err := checkServiceIsRunning(ctx, avn, acl.Spec.Project, acl.Spec.ServiceName)
-	if err != nil {
-		meta.SetStatusCondition(&acl.Status.Conditions, getErrorCondition("Delete", err))
-	}
-	return running, err
+	return checkServiceIsRunning(ctx, avn, acl.Spec.Project, acl.Spec.ServiceName)
 }
 
 func (h KafkaACLHandler) convert(i client.Object) (*v1alpha1.KafkaACL, error) {
diff --git a/controllers/kafkaconnector_controller.go b/controllers/kafkaconnector_controller.go
index f9903ceed..d5ea24ffe 100644
--- a/controllers/kafkaconnector_controller.go
+++ b/controllers/kafkaconnector_controller.go
@@ -52,28 +52,29 @@ func (h KafkaConnectorHandler) createOrUpdate(ctx context.Context, avn *aiven.Cl
 
 	exists, err := h.exists(ctx, avn, conn)
 	if err != nil {
-		meta.SetStatusCondition(&conn.Status.Conditions, getErrorCondition("CheckExists", err))
-		return fmt.Errorf("unable to check if kafka connector exists: %w", err)
-	}
-
-	connCfg, err := h.buildConnectorConfig(conn)
-	if err != nil {
-		meta.SetStatusCondition(&conn.Status.Conditions, getErrorCondition("BuildConfig", err))
-		return fmt.Errorf("unable to build connector config: %w", err)
+		return err
 	}
 
 	var reason string
 	if !exists {
+		connCfg, err := h.buildConnectorConfig(conn)
+		if err != nil {
+			return err
+		}
+
 		err = avn.KafkaConnectors.Create(ctx, conn.Spec.Project, conn.Spec.ServiceName, connCfg)
 		if err != nil && !aiven.IsAlreadyExists(err) {
-			meta.SetStatusCondition(&conn.Status.Conditions, getErrorCondition("Create", err))
 			return err
 		}
 		reason = "Created"
 	} else {
-		_, err := avn.KafkaConnectors.Update(ctx, conn.Spec.Project, conn.Spec.ServiceName, conn.Name, connCfg)
+		connCfg, err := h.buildConnectorConfig(conn)
+		if err != nil {
+			return err
+		}
+
+		_, err = avn.KafkaConnectors.Update(ctx, conn.Spec.Project, conn.Spec.ServiceName, conn.Name, connCfg)
 		if err != nil {
-			meta.SetStatusCondition(&conn.Status.Conditions, getErrorCondition("Update", err))
 			return err
 		}
 		reason = "Updated"
@@ -135,7 +136,7 @@ func (h KafkaConnectorHandler) buildConnectorConfig(conn *v1alpha1.KafkaConnecto
 		}
 		m[k] = templateRes.String()
 	}
-	return aiven.KafkaConnectorConfig(m), nil
+	return m, nil
 }
 
 func (h KafkaConnectorHandler) delete(ctx context.Context, avn *aiven.Client, obj client.Object) (bool, error) {
@@ -145,7 +146,6 @@ func (h KafkaConnectorHandler) delete(ctx context.Context, avn *aiven.Client, ob
 	}
 	err = avn.KafkaConnectors.Delete(ctx, conn.Spec.Project, conn.Spec.ServiceName, conn.Name)
 	if err != nil && !aiven.IsNotFound(err) {
-		meta.SetStatusCondition(&conn.Status.Conditions, getErrorCondition("Delete", err))
 		return false, fmt.Errorf("unable to delete kafka connector: %w", err)
 	}
 	return true, nil
@@ -220,11 +220,7 @@ func (h KafkaConnectorHandler) checkPreconditions(ctx context.Context, avn *aive
 	meta.SetStatusCondition(&conn.Status.Conditions,
 		getInitializedCondition("Preconditions", "Checking preconditions"))
 
-	running, err := checkServiceIsRunning(ctx, avn, conn.Spec.Project, conn.Spec.ServiceName)
-	if err != nil {
-		meta.SetStatusCondition(&conn.Status.Conditions, getErrorCondition("Preconditions", err))
-	}
-	return running, err
+	return checkServiceIsRunning(ctx, avn, conn.Spec.Project, conn.Spec.ServiceName)
 }
 
 func (h KafkaConnectorHandler) convert(o client.Object) (*v1alpha1.KafkaConnector, error) {
diff --git a/controllers/kafkatopic_controller.go b/controllers/kafkatopic_controller.go
index 7c278a596..866b69e13 100644
--- a/controllers/kafkatopic_controller.go
+++ b/controllers/kafkatopic_controller.go
@@ -53,7 +53,6 @@ func (h KafkaTopicHandler) createOrUpdate(ctx context.Context, avn *aiven.Client
 
 	exists, err := h.exists(ctx, avn, topic)
 	if err != nil {
-		meta.SetStatusCondition(&topic.Status.Conditions, getErrorCondition("CheckExists", err))
 		return err
 	}
 
@@ -67,7 +66,6 @@ func (h KafkaTopicHandler) createOrUpdate(ctx context.Context, avn *aiven.Client
 			Config:      convertKafkaTopicConfig(topic),
 		})
 		if err != nil && !aiven.IsAlreadyExists(err) {
-			meta.SetStatusCondition(&topic.Status.Conditions, getErrorCondition("Create", err))
 			return err
 		}
 
@@ -81,8 +79,7 @@ func (h KafkaTopicHandler) createOrUpdate(ctx context.Context, avn *aiven.Client
 				Config:      convertKafkaTopicConfig(topic),
 			})
 		if err != nil {
-			meta.SetStatusCondition(&topic.Status.Conditions, getErrorCondition("Update", err))
-			return fmt.Errorf("cannot update Kafka Topic: %w", err)
+			return err
 		}
 
 		reason = "Updated"
@@ -115,7 +112,6 @@ func (h KafkaTopicHandler) delete(ctx context.Context, avn *aiven.Client, obj cl
 	// Delete project on Aiven side
 	err = avn.KafkaTopics.Delete(ctx, topic.Spec.Project, topic.Spec.ServiceName, topic.GetTopicName())
 	if err != nil && !aiven.IsNotFound(err) {
-		meta.SetStatusCondition(&topic.Status.Conditions, getErrorCondition("Delete", err))
 		return false, err
 	}
 
@@ -172,11 +168,7 @@ func (h KafkaTopicHandler) checkPreconditions(ctx context.Context, avn *aiven.Cl
 	meta.SetStatusCondition(&topic.Status.Conditions,
 		getInitializedCondition("Preconditions", "Checking preconditions"))
 
-	running, err := checkServiceIsRunning(ctx, avn, topic.Spec.Project, topic.Spec.ServiceName)
-	if err != nil {
-		meta.SetStatusCondition(&topic.Status.Conditions, getErrorCondition("Preconditions", err))
-	}
-	return running, err
+	return checkServiceIsRunning(ctx, avn, topic.Spec.Project, topic.Spec.ServiceName)
 }
 
 func (h KafkaTopicHandler) getState(ctx context.Context, avn *aiven.Client, topic *v1alpha1.KafkaTopic) (string, error) {
diff --git a/controllers/project_controller.go b/controllers/project_controller.go
index fc1be4ff6..8096c20f4 100644
--- a/controllers/project_controller.go
+++ b/controllers/project_controller.go
@@ -77,7 +77,6 @@ func (h ProjectHandler) createOrUpdate(ctx context.Context, avn *aiven.Client, o
 
 	exists, err := h.exists(ctx, avn, project)
 	if err != nil {
-		meta.SetStatusCondition(&project.Status.Conditions, getErrorCondition("CheckExists", err))
 		return fmt.Errorf("project does not exists: %w", err)
 	}
 
diff --git a/go.mod b/go.mod
index f235e7366..b61e37845 100644
--- a/go.mod
+++ b/go.mod
@@ -10,7 +10,6 @@ require (
 	github.com/ghodss/yaml v1.0.0
 	github.com/go-logr/logr v1.3.0
 	github.com/google/go-cmp v0.6.0
-	github.com/hashicorp/go-multierror v1.1.1
 	github.com/liip/sheriff v0.11.1
 	github.com/otiai10/copy v1.14.0
 	github.com/pkg/errors v0.9.1
@@ -52,7 +51,6 @@ require (
 	github.com/google/gnostic v0.5.7-v3refs // indirect
 	github.com/google/gofuzz v1.1.0 // indirect
 	github.com/google/uuid v1.3.0 // indirect
-	github.com/hashicorp/errwrap v1.0.0 // indirect
 	github.com/hashicorp/go-cleanhttp v0.5.2 // indirect
 	github.com/hashicorp/go-retryablehttp v0.7.4 // indirect
 	github.com/hashicorp/go-version v0.0.0-20161031182605-e96d38404026 // indirect
diff --git a/go.sum b/go.sum
index 760e0483a..d12227883 100644
--- a/go.sum
+++ b/go.sum
@@ -234,14 +234,10 @@ github.com/googleapis/gax-go/v2 v2.0.4/go.mod h1:0Wqv26UfaUD9n4G6kQubkQ+KchISgw+
 github.com/googleapis/gax-go/v2 v2.0.5/go.mod h1:DWXyrwAJ9X0FpwwEdw+IPEYBICEFu5mhpdKc/us6bOk=
 github.com/googleapis/gax-go/v2 v2.1.0/go.mod h1:Q3nei7sK6ybPYH7twZdmQpAd1MKb7pfu6SK+H1/DsU0=
 github.com/grpc-ecosystem/grpc-gateway v1.16.0/go.mod h1:BDjrQk3hbvj6Nolgz8mAMFbcEtjT1g+wF4CSlocrBnw=
-github.com/hashicorp/errwrap v1.0.0 h1:hLrqtEDnRye3+sgx6z4qVLNuviH3MR5aQ0ykNJa/UYA=
-github.com/hashicorp/errwrap v1.0.0/go.mod h1:YH+1FKiLXxHSkmPseP+kNlulaMuP3n2brvKWEqk/Jc4=
 github.com/hashicorp/go-cleanhttp v0.5.2 h1:035FKYIWjmULyFRBKPs8TBQoi0x6d9G4xc9neXJWAZQ=
 github.com/hashicorp/go-cleanhttp v0.5.2/go.mod h1:kO/YDlP8L1346E6Sodw+PrpBSV4/SoxCXGY6BqNFT48=
 github.com/hashicorp/go-hclog v0.9.2 h1:CG6TE5H9/JXsFWJCfoIVpKFIkFe6ysEuHirp4DxCsHI=
 github.com/hashicorp/go-hclog v0.9.2/go.mod h1:5CU+agLiy3J7N7QjHK5d05KxGsuXiQLrjA0H7acj2lQ=
-github.com/hashicorp/go-multierror v1.1.1 h1:H5DkEtf6CXdFp0N0Em5UCwQpXMWke8IA0+lD48awMYo=
-github.com/hashicorp/go-multierror v1.1.1/go.mod h1:iw975J/qwKPdAO1clOe2L8331t/9/fmwbPZ6JB6eMoM=
 github.com/hashicorp/go-retryablehttp v0.7.4 h1:ZQgVdpTdAL7WpMIwLzCfbalOcSUdkDZnpUv3/+BxzFA=
 github.com/hashicorp/go-retryablehttp v0.7.4/go.mod h1:Jy/gPYAdjqffZ/yFGCFV2doI5wjtH1ewM9u8iYVjtX8=
 github.com/hashicorp/go-version v0.0.0-20161031182605-e96d38404026 h1:qWx/DcC6l4ZzuS+JBAzI5XjtLFDCc08zYeZ0kLnaH2g=