diff --git a/CMakeLists.txt b/CMakeLists.txt
index 3f606355..10b0cf3f 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -49,7 +49,6 @@ set(CMAKE_BINARY_DIR ${FMILibrary_BINARY_DIR})
 set(CMAKE_MODULE_PATH ${CMAKE_SOURCE_DIR}/Config.cmake)
 
 # User configuration options and parameters
-set(FMILIB_INSTALL_PREFIX ${CMAKE_BINARY_DIR}/../install CACHE PATH "Prefix prepended to install directories")
 set(FMILIB_THIRDPARTYLIBS  ${CMAKE_SOURCE_DIR}/ThirdParty CACHE PATH "Path to the ThirdParty library dir" )
 set(FMILIB_FMI_STANDARD_HEADERS  ${FMILIB_THIRDPARTYLIBS}/FMI/default CACHE PATH "Path to the FMI standard headers dir" )
 
@@ -109,8 +108,6 @@ if(NOT CMAKE_BUILD_TYPE)
     SET(CMAKE_BUILD_TYPE ${FMILIB_DEFAULT_BUILD_TYPE})
 endif()
 
-set(CMAKE_INSTALL_PREFIX ${FMILIB_INSTALL_PREFIX} CACHE INTERNAL "Prefix prepended to install directories" FORCE)
-
 # debug_message is used to trace the build script
 function(debug_message)
     if(FMILIB_PRINT_DEBUG_MESSAGES)
@@ -436,8 +433,6 @@ endfunction()
 
 if(FMILIB_GENERATE_DOXYGEN_DOC)
 
-    file(MAKE_DIRECTORY "${FMILIB_INSTALL_PREFIX}/doc")
-
     set(DOXYFILE_IN ${CMAKE_SOURCE_DIR}/Config.cmake/fmilib_doxydoc.conf CACHE INTERNAL "Doxygen config file")
     set(DOXYFILE_IMAGE_DIR "${CMAKE_SOURCE_DIR}/images" CACHE INTERNAL "Doxygen images" FORCE)
 
@@ -458,13 +453,14 @@ if(FMILIB_GENERATE_DOXYGEN_DOC)
     set(DOXYFILE_SOURCE_DIR "${CMAKE_BINARY_DIR}/doc" CACHE INTERNAL "Doxygen default source dir" FORCE)
     set(DOXYFILE_EXTRA_SOURCES "${DOXYFILE_EXTRA_SOURCES} \"${CMAKE_SOURCE_DIR}/Test\"")
 
-    set(DOXYFILE_OUTPUT_DIR "${FMILIB_INSTALL_PREFIX}/doc")
+    set(DOXYFILE_OUTPUT_DIR "${CMAKE_BINARY_DIR}/doc")
 
     set(DOXYFILE_STRIP_FROM_PATH "${CMAKE_SOURCE_DIR}")
 
     set(CMAKE_MODULE_PATH ${FMILIB_THIRDPARTYLIBS}/CMakeModules)
 
     include(UseDoxygen/UseDoxygen)
+
 endif(FMILIB_GENERATE_DOXYGEN_DOC)
 
 # Debug only: prints the final value of all the non-environment variables
diff --git a/FMILIB_Readme.txt b/FMILIB_Readme.txt
index 19cd7433..9ed5221d 100644
--- a/FMILIB_Readme.txt
+++ b/FMILIB_Readme.txt
@@ -31,19 +31,19 @@ CMake 3.1.3 or later is required in order to build expat.
 To build from a terminal command line on Linux or Mac with default settings use:
 \code
 	mkdir build-fmil; cd build-fmil
-	cmake -DFMILIB_INSTALL_PREFIX=<prefix> <path to FMIL source>
+	cmake -DCMAKE_INSTALL_PREFIX=<prefix> <path to FMIL source>
 	make install test
 \endcode
 To build in MSYS terminal with g++/gcc on Windows:
 \code
 	mkdir build-fmil; cd build-fmil
-	cmake -DFMILIB_INSTALL_PREFIX=<prefix> -G "MSYS Makefiles" <path to FMIL source>
+	cmake -DCMAKE_INSTALL_PREFIX=<prefix> -G "MSYS Makefiles" <path to FMIL source>
 	make install test
 \endcode
 To build from command line with Microsoft Visual Studio compilers on Windows:
 \code
 	mkdir build-fmil; cd build-fmil
-	cmake -DFMILIB_INSTALL_PREFIX=<prefix> -G "Visual Studio 10" <path to FMIL source>
+	cmake -DCMAKE_INSTALL_PREFIX=<prefix> -G "Visual Studio 10" <path to FMIL source>
 	cmake --build . --config MinSizeRel --target install
 \endcode
 
@@ -62,7 +62,7 @@ The primary targets of the library build script are:
   the project in Visual Studio.
 
 The following build configuration options are provided:
-- \b FMILIB_INSTALL_PREFIX - prefix prepended to install directories.\n
+- \b CMAKE_INSTALL_PREFIX - prefix prepended to install directories.\n
    Default: "../install" \n
    This is the main install directory name. Include files will be located in
    the "include" subdirectory and library files in the "lib" subdirectory.
diff --git a/Makefile b/Makefile
index 074cb772..e57267ed 100644
--- a/Makefile
+++ b/Makefile
@@ -22,7 +22,7 @@ documentation: generate
 generate:
 	mkdir -p $(BUILD_DIR)
 	cd $(BUILD_DIR) && \
-		cmake -DFMILIB_INSTALL_PREFIX=../$(INSTALL_DIR) \
+		cmake -DCMAKE_INSTALL_PREFIX=../$(INSTALL_DIR) \
 			-DFMILIB_GENERATE_DOXYGEN_DOC=$(GENERATE_DOXYGEN_DOC) \
 			-DFMILIB_BUILD_WITH_STATIC_RTLIB=$(BUILD_WITH_STATIC_RTLIB) \
 			-DFMILIB_BUILD_TESTS=$(BUILD_TESTS) \