diff --git a/README.md b/README.md
index b529c166..15df917c 100644
--- a/README.md
+++ b/README.md
@@ -60,6 +60,7 @@ The following parameters can be set in config files or in env variables:
 - ES.ES_REFRESH: Elasticsearch refresh method. Default to string `true`(i.e. refresh immediately)
 - FILE_UPLOAD_SIZE_LIMIT: the file upload size limit in bytes
 - RESOURCES_API_URL: TC resources API base URL
+- V3_PROJECTS_API_URL: TC direct projects API base URL
 - GROUPS_API_URL: TC groups API base URL
 - PROJECTS_API_URL: TC projects API base URL
 - TERMS_API_URL: TC Terms API Base URL
diff --git a/config/default.js b/config/default.js
index 58ea49b6..e7d1cf02 100644
--- a/config/default.js
+++ b/config/default.js
@@ -50,6 +50,7 @@ module.exports = {
   GROUPS_API_URL: process.env.GROUPS_API_URL || 'http://localhost:4000/v5/groups',
   PROJECTS_API_URL: process.env.PROJECTS_API_URL || 'http://localhost:4000/v5/projects',
   TERMS_API_URL: process.env.TERMS_API_URL || 'http://localhost:4000/v5/terms',
+  V3_PROJECTS_API_URL: process.env.V3_PROJECTS_API_URL || 'http://localhost:4000/v3/direct/projects',
   // copilot resource role ids allowed to upload attachment
   COPILOT_RESOURCE_ROLE_IDS: process.env.COPILOT_RESOURCE_ROLE_IDS
     ? process.env.COPILOT_RESOURCE_ROLE_IDS.split(',') : ['10ba038e-48da-487b-96e8-8d3b99b6d18b'],
diff --git a/src/common/helper.js b/src/common/helper.js
index ffb9f3cd..1ce3c49f 100644
--- a/src/common/helper.js
+++ b/src/common/helper.js
@@ -587,6 +587,19 @@ async function getProjectDefaultTerms (projectId) {
   return res.data.terms || []
 }
 
+/**
+ * This functions gets the default billing account for a given project id
+ *
+ * @param {Number} projectId The id of the project for which to get the default terms of use
+ * @returns {Promise<Number>} The billing account ID
+ */
+async function getProjectBillingAccount (projectId) {
+  const token = await getM2MToken()
+  const projectUrl = `${config.V3_PROJECTS_API_URL}/${projectId}`
+  const res = await axios.get(projectUrl, { headers: { Authorization: `Bearer ${token}` } })
+  return _.get(res, 'data.result.content.billingAccountIds[0]', null)
+}
+
 /**
  * This function gets the challenge terms array with the terms data
  * The terms data is retrieved from the terms API using the specified terms ids
@@ -642,5 +655,6 @@ module.exports = {
   listChallengesByMember,
   validateESRefreshMethod,
   getProjectDefaultTerms,
-  validateChallengeTerms
+  validateChallengeTerms,
+  getProjectBillingAccount
 }
diff --git a/src/services/ChallengeService.js b/src/services/ChallengeService.js
index c06ce228..02f7e107 100644
--- a/src/services/ChallengeService.js
+++ b/src/services/ChallengeService.js
@@ -443,6 +443,9 @@ async function populatePhases (phases, startDate, timelineTemplateId) {
  * @returns {Object} the created challenge
  */
 async function createChallenge (currentUser, challenge, userToken) {
+  if (challenge.status === constants.challengeStatuses.Active) {
+    throw new errors.BadRequestError('You cannot create an Active challenge. Please create a Draft challenge and then change the status to Active.')
+  }
   await helper.ensureProjectExist(challenge.projectId, userToken)
   await validateChallengeData(challenge)
   if (challenge.phases && challenge.phases.length > 0) {
@@ -755,6 +758,18 @@ async function update (currentUser, challengeId, data, userToken, isFull) {
   // helper.ensureNoDuplicateOrNullElements(data.gitRepoURLs, 'gitRepoURLs')
 
   const challenge = await helper.getById('Challenge', challengeId)
+  let billingAccountId
+  if (data.status) {
+    if (data.status === constants.challengeStatuses.Active && _.isUndefined(challenge.legacy.directProjectId)) {
+      throw new errors.BadRequestError('You cannot activate the challenge as it has not been created on legacy yet. Please try again later or contact support.')
+    }
+    if (data.status === constants.challengeStatuses.Completed) {
+      if (challenge.status !== constants.challengeStatuses.Active) {
+        throw new errors.BadRequestError('You cannot mark a Draft challenge as Completed')
+      }
+      billingAccountId = helper.getProjectBillingAccount(challenge.legacy.directProjectId)
+    }
+  }
 
   // FIXME: Tech Debt
   if (_.get(challenge, 'legacy.track') && _.get(data, 'legacy.track') && _.get(challenge, 'legacy.track') !== _.get(data, 'legacy.track')) {
@@ -1091,7 +1106,11 @@ async function update (currentUser, challengeId, data, userToken, isFull) {
 
   // post bus event
   logger.debug(`Post Bus Event: ${constants.Topics.ChallengeUpdated} ${JSON.stringify(challenge)}`)
-  await helper.postBusEvent(constants.Topics.ChallengeUpdated, challenge)
+  const busEventPayload = { ...challenge }
+  if (billingAccountId) {
+    busEventPayload.billingAccountId = billingAccountId
+  }
+  await helper.postBusEvent(constants.Topics.ChallengeUpdated, busEventPayload)
 
   if (challenge.phases && challenge.phases.length > 0) {
     challenge.currentPhase = challenge.phases.slice().reverse().find(phase => phase.isOpen)