diff --git a/README.md b/README.md
index 3134834..967534d 100644
--- a/README.md
+++ b/README.md
@@ -45,6 +45,7 @@ No modules.
 | Name | Type |
 |------|------|
 | [local_file.this](https://registry.terraform.io/providers/hashicorp/local/latest/docs/resources/file) | resource |
+| [tfe_project.project](https://registry.terraform.io/providers/hashicorp/tfe/latest/docs/resources/project) | resource |
 | [tfe_workspace.this](https://registry.terraform.io/providers/hashicorp/tfe/latest/docs/resources/workspace) | resource |
 | [tfe_workspace_variable_set.this](https://registry.terraform.io/providers/hashicorp/tfe/latest/docs/resources/workspace_variable_set) | resource |
 
@@ -63,7 +64,7 @@ No modules.
 | <a name="input_terraform_backend"></a> [terraform\_backend](#input\_terraform\_backend) | Allows to set terraform backend configurations | <pre>object({<br>    name    = string<br>    configs = optional(any, {})<br>  })</pre> | <pre>{<br>  "configs": null,<br>  "name": null<br>}</pre> | no |
 | <a name="input_terraform_version"></a> [terraform\_version](#input\_terraform\_version) | The required\_version variable value for terraform{} block in versions.tf | `string` | `">= 1.3.0"` | no |
 | <a name="input_variable_set_ids"></a> [variable\_set\_ids](#input\_variable\_set\_ids) | The list of variable set ids to attach to workspace | `list(string)` | `null` | no |
-| <a name="input_workspace"></a> [workspace](#input\_workspace) | Terraform cloud workspace configurations | <pre>object({<br>    org                 = string<br>    tags                = optional(list(string), null)<br>    description         = optional(string, null)<br>    directory           = optional(string, "./") # this seems supposed to be the root directory of git repo<br>    global_remote_state = optional(bool, true)   # allow org workspaces access to this workspace state, TODO: there is a way to implement specific workspaces whitelisting using remote_state_consumer_ids, needs apply and testing<br><br>  })</pre> | n/a | yes |
+| <a name="input_workspace"></a> [workspace](#input\_workspace) | Terraform cloud workspace configurations | <pre>object({<br>    org                 = string<br>    tags                = optional(list(string), null)<br>    description         = optional(string, null)<br>    directory           = optional(string, "./") # this seems supposed to be the root directory of git repo<br>    global_remote_state = optional(bool, true)   # allow org workspaces access to this workspace state, TODO: there is a way to implement specific workspaces whitelisting using remote_state_consumer_ids, needs apply and testing<br>    project             = optional(string, null) # name of the project to be created and where the workspace should be created<br>    project_id          = optional(string, null) # ID of the project which already exists, if none of project and project_id is provided Default Project is used for storing workspaces<br>  })</pre> | n/a | yes |
 
 ## Outputs
 
diff --git a/git-conventional-commits.json b/git-conventional-commits.json
new file mode 100644
index 0000000..009fca5
--- /dev/null
+++ b/git-conventional-commits.json
@@ -0,0 +1,41 @@
+{
+  "convention" : {
+    "commitTypes": [
+      "feat",
+      "fix",
+      "perf",
+      "refactor",
+      "style",
+      "test",
+      "build",
+      "ops",
+      "docs",
+      "merge",
+      "chore"
+    ],
+    "commitScopes": [],
+    "releaseTagGlobPattern":  "v[0-9]*.[0-9]*.[0-9]*",
+    "issueRegexPattern": "(^|\\s)#\\d+(\\s|$)"
+  },
+  "changelog" : {
+    "commitTypes": [
+      "feat",
+      "fix",
+      "perf",
+      "merge"
+    ],
+    "includeInvalidCommits": true,
+    "commitScopes": [],
+    "commitIgnoreRegexPattern": "^WIP ",
+    "headlines": {
+      "feat": "Features",
+      "fix": "Bug Fixes",
+      "perf": "Performance Improvements",
+      "merge": "Merged Branches",
+      "breakingChange": "BREAKING CHANGES"
+    },
+    "commitUrl": "https://github.com/ACCOUNT/REPOSITORY/commit/%commit%",
+    "commitRangeUrl": "https://github.com/ACCOUNT/REPOSITORY/compare/%from%...%to%?diff=split",
+    "issueUrl": "https://github.com/ACCOUNT/REPOSITORY/issues/%issue%"
+  }
+}
diff --git a/locals.tf b/locals.tf
index 4de5f9f..a374083 100644
--- a/locals.tf
+++ b/locals.tf
@@ -1,6 +1,7 @@
 locals {
-  name_specials_clean       = replace(var.name, "/\\W+/", "_")
-  linked_workspaces_mapping = { for workspace in coalesce(var.linked_workspaces, []) : workspace => "data.tfe_outputs.this[\"${workspace}\"].values.results" }
+  name_specials_clean         = replace(var.name, "/[^a-zA-Z0-9_-]+/", "_")
+  project_name_specials_clean = var.workspace.project != null ? replace(var.workspace.project, "/[^a-zA-Z0-9 _-]+/", "") : null
+  linked_workspaces_mapping   = { for workspace in coalesce(var.linked_workspaces, []) : workspace => "data.tfe_outputs.this[\"${workspace}\"].values.results" }
   main_content = templatefile(
     "${path.module}/templates/main.tftpl",
     {
diff --git a/main.tf b/main.tf
index 4312a36..f8fb0a4 100644
--- a/main.tf
+++ b/main.tf
@@ -5,14 +5,21 @@ resource "local_file" "this" {
   filename = "${trimsuffix(var.target_dir, "/")}/${var.name}/${each.value.name}.tf"
 }
 
+resource "tfe_project" "project" {
+  count = var.workspace.project != null ? 1 : 0
+
+  organization = var.workspace.org
+  name         = local.project_name_specials_clean
+}
+
 resource "tfe_workspace" "this" {
   name                = local.name_specials_clean
   description         = var.workspace.description
   organization        = var.workspace.org
   tag_names           = var.workspace.tags
   global_remote_state = var.workspace.global_remote_state
-
-  working_directory = "${var.workspace.directory}${var.name}"
+  project_id          = try(tfe_project.project[0].id, var.workspace.project_id)
+  working_directory   = "${var.workspace.directory}${var.name}"
 
   dynamic "vcs_repo" {
     for_each = try(var.repo.identifier, null) == null ? [] : [var.repo]
diff --git a/tests/yaml-conf-and-workspace-link/README.md b/tests/yaml-conf-and-workspace-link/README.md
index cacbedd..8d69c6b 100644
--- a/tests/yaml-conf-and-workspace-link/README.md
+++ b/tests/yaml-conf-and-workspace-link/README.md
@@ -10,7 +10,6 @@
 the TF_VAR_github_token and GITHUB_TOKEN are same and contain user github personal access token, check the docs here:
 https://docs.github.com/en/authentication/keeping-your-account-and-data-secure/creating-a-personal-access-token
 
-
 for TFE_TOKEN check the docs here:
 https://registry.terraform.io/providers/hashicorp/tfe/latest/docs
 
@@ -40,7 +39,7 @@ for aws access tokens you will need to have a user having api/cli access to crea
 | Name | Version |
 |------|---------|
 | <a name="provider_test"></a> [test](#provider\_test) | n/a |
-| <a name="provider_tfe"></a> [tfe](#provider\_tfe) | 0.40.0 |
+| <a name="provider_tfe"></a> [tfe](#provider\_tfe) | ~> 0.40.0 |
 
 ## Modules
 
diff --git a/variables.tf b/variables.tf
index 4c231a8..7eeed9a 100644
--- a/variables.tf
+++ b/variables.tf
@@ -20,7 +20,8 @@ variable "workspace" {
     description         = optional(string, null)
     directory           = optional(string, "./") # this seems supposed to be the root directory of git repo
     global_remote_state = optional(bool, true)   # allow org workspaces access to this workspace state, TODO: there is a way to implement specific workspaces whitelisting using remote_state_consumer_ids, needs apply and testing
-
+    project             = optional(string, null) # name of the project to be created and where the workspace should be created
+    project_id          = optional(string, null) # ID of the project which already exists, if none of project and project_id is provided Default Project is used for storing workspaces
   })
 
   description = "Terraform cloud workspace configurations"