diff --git a/.nuget/NuGet.Config b/.nuget/NuGet.Config
index 6a318ad..b3fd56a 100644
--- a/.nuget/NuGet.Config
+++ b/.nuget/NuGet.Config
@@ -1,5 +1,16 @@
 <?xml version="1.0" encoding="utf-8"?>
 <configuration>
+  <packageSources>
+    <clear />
+    <add key="nuget.org" value="https://api.nuget.org/v3/index.json" protocolVersion="3" />
+  </packageSources>
+  <activePackageSource>
+    <clear />
+    <add key="All" value="(Aggregate source)" />
+  </activePackageSource>
+  <disabledPackageSources>
+    <clear />
+  </disabledPackageSources>
   <solution>
     <add key="disableSourceControlIntegration" value="true" />
   </solution>
diff --git a/.nuget/NuGet.exe b/.nuget/NuGet.exe
index 8dd7e45..0cc4088 100644
Binary files a/.nuget/NuGet.exe and b/.nuget/NuGet.exe differ
diff --git a/packageAll.ps1 b/packageAll.ps1
index aa251a7..ab2e0dc 100644
--- a/packageAll.ps1
+++ b/packageAll.ps1
@@ -1,17 +1,17 @@
-Write-Host "Packaging all modules..."
-
-Get-ChildItem . -filter "*.nuspec" -recurse | Foreach {
-	$nuspec = $_.fullname
-	Write-Host "Packing $nuspec"
-	
-	$dirName = Split-Path $nuspec -Parent
-	[xml] $packageMeta = Get-Content $nuspec
-	$packageName = $packageMeta.package.metadata.id
-	$entryPoint = "$dirName\$packageName.ps1"
-	if (!(Test-Path $entryPoint))
-	{
-		throw "No entry name has been found for $nuspec.`n Ensure that $entryPoint exists!"
-	}
-	
-	.nuget\\NuGet.exe pack $nuspec -NoPackageAnalysis
+Write-Host "Packaging all modules..."
+
+Get-ChildItem . -filter "*.nuspec" -recurse | Foreach {
+	$nuspec = $_.fullname
+	Write-Host "Packing $nuspec"
+	
+	$dirName = Split-Path $nuspec -Parent
+	[xml] $packageMeta = Get-Content $nuspec
+	$packageName = $packageMeta.package.metadata.id
+	$entryPoint = "$dirName\$packageName.ps1"
+	if (!(Test-Path $entryPoint))
+	{
+		throw "No entry name has been found for $nuspec.`n Ensure that $entryPoint exists!"
+	}
+	
+	.nuget\\NuGet.exe pack $nuspec -NoPackageAnalysis
 }
\ No newline at end of file
diff --git a/psmake.Tests/psmake.Tests.ps1 b/psmake.Tests/psmake.Tests.ps1
index cd2a994..3ff7e45 100644
--- a/psmake.Tests/psmake.Tests.ps1
+++ b/psmake.Tests/psmake.Tests.ps1
@@ -1,5 +1,5 @@
 $psmake = "$PSScriptRoot\..\psmake\psmake.ps1"
-$expectedVersion = '3.1.7.0'
+$expectedVersion = '3.1.8'
 
 <# Disable Write-Host in tested code #>
 function Write-Host
diff --git a/psmake.mod.packaging.Tests/psmake.mod.packaging.Tests.ps1 b/psmake.mod.packaging.Tests/psmake.mod.packaging.Tests.ps1
index a266d9d..8986743 100644
--- a/psmake.mod.packaging.Tests/psmake.mod.packaging.Tests.ps1
+++ b/psmake.mod.packaging.Tests/psmake.mod.packaging.Tests.ps1
@@ -32,7 +32,7 @@ Describe "Package-VSProject" {
         Package-VsProject 'abc.csproj'
 
         $capturedCalls.Count | Should Be 1
-        $capturedCalls[0] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'abc.csproj', '-Prop', 'Configuration=Release', '-Prop', 'Platform=AnyCPU', '-NonInteractive', '-Output', '.', '-IncludeReferencedProjects')
+        $capturedCalls[0] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'abc.csproj', '-Prop', 'Configuration=Release', '-Prop', 'Platform=AnyCPU', '-NonInteractive', '-OutputDirectory', '.', '-IncludeReferencedProjects')
     }
 
     It "It should call Nuget with specified parameters" {
@@ -40,7 +40,7 @@ Describe "Package-VSProject" {
         Package-VsProject 'my project.csproj' -Configuration 'Debug' -IncludeReferencedProjects $false -Symbols $true -Version '3.2.1' -Output 'my folder' -Platform 'x86'
 
         $capturedCalls.Count | Should Be 1
-        $capturedCalls[0] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'my project.csproj', '-Prop', 'Configuration=Debug', '-Prop', 'Platform=x86', '-NonInteractive', '-Output', 'my folder', '-Symbols', '-Version', '3.2.1')
+        $capturedCalls[0] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'my project.csproj', '-Prop', 'Configuration=Debug', '-Prop', 'Platform=x86', '-NonInteractive', '-OutputDirectory', 'my folder', '-Symbols', '-Version', '3.2.1')
     }
 	
 	It "It should pipe project paths" {
@@ -53,8 +53,8 @@ Describe "Package-VSProject" {
         List-Projects | Package-VsProject
 
         $capturedCalls.Count | Should Be 2
-        $capturedCalls[0] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'a.csproj', '-Prop', 'Configuration=Release', '-Prop', 'Platform=AnyCPU', '-NonInteractive', '-Output', '.', '-IncludeReferencedProjects')
-		$capturedCalls[1] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'b.csproj', '-Prop', 'Configuration=Release', '-Prop', 'Platform=AnyCPU', '-NonInteractive', '-Output', '.', '-IncludeReferencedProjects')
+        $capturedCalls[0] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'a.csproj', '-Prop', 'Configuration=Release', '-Prop', 'Platform=AnyCPU', '-NonInteractive', '-OutputDirectory', '.', '-IncludeReferencedProjects')
+		$capturedCalls[1] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'b.csproj', '-Prop', 'Configuration=Release', '-Prop', 'Platform=AnyCPU', '-NonInteractive', '-OutputDirectory', '.', '-IncludeReferencedProjects')
     }
 }
 
@@ -71,7 +71,7 @@ Describe "Package-DeployableNuSpec" {
         Package-DeployableNuSpec 'abc.nuspec'
 
         $capturedCalls.Count | Should Be 1
-        $capturedCalls[0] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'abc.nuspec', '-NonInteractive', '-Output', '.', '-NoPackageAnalysis')
+        $capturedCalls[0] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'abc.nuspec', '-NonInteractive', '-OutputDirectory', '.', '-NoPackageAnalysis')
     }
 
     It "It should call Nuget with specified parameters" {
@@ -79,7 +79,7 @@ Describe "Package-DeployableNuSpec" {
         Package-DeployableNuSpec 'my project.nuspec' -NoPackageAnalysis $false -NoDefaultExcludes $true -Version '3.2.1' -Output 'my folder'
 
         $capturedCalls.Count | Should Be 1
-        $capturedCalls[0] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'my project.nuspec', '-NonInteractive', '-Output', 'my folder', '-NoDefaultExcludes', '-Version', '3.2.1')
+        $capturedCalls[0] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'my project.nuspec', '-NonInteractive', '-OutputDirectory', 'my folder', '-NoDefaultExcludes', '-Version', '3.2.1')
     }
 	
 	It "It should pipe project paths" {
@@ -92,8 +92,8 @@ Describe "Package-DeployableNuSpec" {
         List-Projects | Package-DeployableNuSpec
 
         $capturedCalls.Count | Should Be 2        
-        $capturedCalls[0] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'a.nuspec', '-NonInteractive', '-Output', '.', '-NoPackageAnalysis')
-		$capturedCalls[1] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'b.nuspec', '-NonInteractive', '-Output', '.', '-NoPackageAnalysis')
+        $capturedCalls[0] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'a.nuspec', '-NonInteractive', '-OutputDirectory', '.', '-NoPackageAnalysis')
+		$capturedCalls[1] | %{$_} | Should Be @($Context.NuGetExe,'pack', 'b.nuspec', '-NonInteractive', '-OutputDirectory', '.', '-NoPackageAnalysis')
     }
 }
 
diff --git a/psmake.mod.packaging/ChangeLog.txt b/psmake.mod.packaging/ChangeLog.txt
index 879f822..24cbd6d 100644
--- a/psmake.mod.packaging/ChangeLog.txt
+++ b/psmake.mod.packaging/ChangeLog.txt
@@ -1,6 +1,11 @@
 PsMake Packaging Module
 ========================================
 
+Version 1.2.0.0
+----------------------------------------
+(Change) Nuget.exe pack command deprecated 'Output' argument to 'OutputDirectory'
+(Change) NuGet.exe versions to 4.6.2
+
 Version 1.1.0.0
 ----------------------------------------
 (Change) Package-VSProject: added Platform parameter with default: AnyCPU
diff --git a/psmake.mod.packaging/package.nuspec b/psmake.mod.packaging/package.nuspec
index 63e89ab..532911a 100644
--- a/psmake.mod.packaging/package.nuspec
+++ b/psmake.mod.packaging/package.nuspec
@@ -2,7 +2,7 @@
 <package xmlns="http://schemas.microsoft.com/packaging/2010/07/nuspec.xsd">
   <metadata>
     <id>psmake.mod.packaging</id>
-    <version>1.1.0.0</version>
+    <version>1.2.0.0</version>
 	<title>PSMake Packaging module</title>
     <authors>Wojciech Kotlarski</authors>
     <owners>Wojciech Kotlarski</owners>
diff --git a/psmake.mod.packaging/psmake.mod.packaging.ps1 b/psmake.mod.packaging/psmake.mod.packaging.ps1
index 0911a04..72f2f5f 100644
--- a/psmake.mod.packaging/psmake.mod.packaging.ps1
+++ b/psmake.mod.packaging/psmake.mod.packaging.ps1
@@ -48,7 +48,7 @@ function Package-VSProject
         [string]$Platform = "AnyCPU"
     )
     process {
-        $arguments = @("pack",$Project,"-Prop","Configuration=$Configuration","-Prop","Platform=$Platform","-NonInteractive","-Output",$Output)
+        $arguments = @("pack",$Project,"-Prop","Configuration=$Configuration","-Prop","Platform=$Platform","-NonInteractive","-OutputDirectory",$Output)
         if ($IncludeReferencedProjects) { $arguments += "-IncludeReferencedProjects"}
         if ($Symbols) { $arguments += "-Symbols" }
         if ($Version) { $arguments += "-Version"; $arguments += $Version; }
@@ -98,7 +98,7 @@ function Package-DeployableNuSpec
         [bool]$NoDefaultExcludes = $false
     )
     process {
-        $arguments = "pack",$Package,"-NonInteractive","-Output",$Output
+        $arguments = "pack",$Package,"-NonInteractive","-OutputDirectory",$Output
         if ($NoPackageAnalysis) { $arguments += "-NoPackageAnalysis"}
         if ($NoDefaultExcludes) { $arguments += "-NoDefaultExcludes"}
         if ($Version) { $arguments += "-Version"; $arguments += $Version; }
diff --git a/psmake.mod.testing.Tests/TestSolution/.nuget/NuGet.Config b/psmake.mod.testing.Tests/TestSolution/.nuget/NuGet.Config
index 99caae8..5a3ae58 100644
--- a/psmake.mod.testing.Tests/TestSolution/.nuget/NuGet.Config
+++ b/psmake.mod.testing.Tests/TestSolution/.nuget/NuGet.Config
@@ -2,7 +2,7 @@
 <configuration>
   <packageSources>
     <clear />
-    <add key="nuget.org" value="https://www.nuget.org/api/v2/"/>
+    <add key="nuget.org" value="https://api.nuget.org/v3/index.json" protocolVersion="3" />
   </packageSources>
   <activePackageSource>
     <clear />
diff --git a/psmake.mod.testing.Tests/TestSolution/.nuget/NuGet.exe b/psmake.mod.testing.Tests/TestSolution/.nuget/NuGet.exe
index 9ca6659..0cc4088 100644
Binary files a/psmake.mod.testing.Tests/TestSolution/.nuget/NuGet.exe and b/psmake.mod.testing.Tests/TestSolution/.nuget/NuGet.exe differ
diff --git a/psmake/ChangeLog.txt b/psmake/ChangeLog.txt
index a26ad61..c3ccd70 100644
--- a/psmake/ChangeLog.txt
+++ b/psmake/ChangeLog.txt
@@ -1,5 +1,10 @@
 PsMake
 ========================================
+Version 3.1.8
+----------------------------------------
+(Change) NuGet.exe versions to 4.6.2
+(Change) Updated PSMake version number. Due to Nuget.exe issues #3050
+
 Version 3.1.7.0
 ----------------------------------------
 General: Added run duration for Overall script and for each step.
diff --git a/psmake/package.nuspec b/psmake/package.nuspec
index 8a03e57..481def1 100644
--- a/psmake/package.nuspec
+++ b/psmake/package.nuspec
@@ -2,7 +2,7 @@
 <package xmlns="http://schemas.microsoft.com/packaging/2010/07/nuspec.xsd">
   <metadata>
     <id>psmake</id>
-    <version>3.1.7.0</version>
+    <version>3.1.8</version>
 	<title>PSMake</title>
     <authors>Wojciech Kotlarski</authors>
     <owners>Wojciech Kotlarski</owners>
diff --git a/psmake/psmake.ps1 b/psmake/psmake.ps1
index 04c0af8..298eeec 100644
--- a/psmake/psmake.ps1
+++ b/psmake/psmake.ps1
@@ -217,7 +217,7 @@ function private:Build-Context()
 
 function private:Get-Version()
 {
-	return "3.1.7.0"
+	return "3.1.8"
 }
 
 function private:Load-MakeFile()
diff --git a/quick_run.ps1 b/quick_run.ps1
index b591106..9e2ebfe 100644
--- a/quick_run.ps1
+++ b/quick_run.ps1
@@ -1,4 +1,4 @@
-rmdir temp -force -recurse -ErrorAction SilentlyContinue
-& .\packageAll.ps1
-& .\psmake\psmake.ps1 -Scaffold empty -md temp -NuGetSource $PSScriptRoot
+rmdir temp -force -recurse -ErrorAction SilentlyContinue
+& .\packageAll.ps1
+& .\psmake\psmake.ps1 -Scaffold empty -md temp -NuGetSource $PSScriptRoot
 & .\temp\make.ps1 -Target build
\ No newline at end of file