diff --git a/l1-contracts/Dockerfile b/l1-contracts/Dockerfile
index adbe93a91929..7a963e49c28c 100644
--- a/l1-contracts/Dockerfile
+++ b/l1-contracts/Dockerfile
@@ -7,7 +7,7 @@ WORKDIR /usr/src/contracts
 
 # Install foundry
 RUN git init
-COPY . .
+COPY ./scripts/install_foundry.sh ./scripts/install_foundry.sh
 RUN ./scripts/install_foundry.sh
 ENV PATH="/usr/src/contracts/.foundry/bin:${PATH}"
 
@@ -17,7 +17,9 @@ RUN forge install --no-commit \
   https://github.com/openzeppelin/openzeppelin-contracts
 ENV MAINNET_RPC_URL='https://mainnet.infura.io/v3/9928b52099854248b3a096be07a6b23c'
 
+COPY . .
+
 # Run build and tests
-RUN forge clean && forge build && forge test
+RUN forge clean && forge fmt --check && forge build && forge test
 
 WORKDIR /usr/src/contracts
\ No newline at end of file
diff --git a/l1-contracts/README.md b/l1-contracts/README.md
index b2e2d07cf75d..1e2e48ee7dfa 100644
--- a/l1-contracts/README.md
+++ b/l1-contracts/README.md
@@ -1 +1,51 @@
-# Aztec 3 contracts
\ No newline at end of file
+# L1 Contracts
+
+This directory contains the Ethereum smart contract that we will be using for progressing the state of the Rollup.
+
+## Installation
+You can install foundry as https://book.getfoundry.sh/ or by running the `./bootstrap.sh` script.
+
+Alternatively you can use docker instead, it will handle installations and run tests. Simply run `docker build .` from the `l1-contracts` folder.
+
+## Structure
+The `src` folder contain contracts that is to be used by the local developer testnet. It is grouped into 3 catagories:
+- `core` contains the required contracts, the bare minimum
+- `mock` contains stubs, for now an always true verifier.
+- `periphery` stuff that is nice to have, convenience contracts and functions belong in here.
+
+## Running tests
+The tests are located in the `test` folder, and execute two consecutive L2Blocks. The blocks and the values they are checked against is generated using the block builder tests (there also is a typescript test in `l2-block-publisher.test.ts` that tests E2E). The tests are currently limited in functionality as it is mainly decoding happening, but will expand over time to include L1 <-> L2 communication and cross chain applications.
+
+As mentioned earlier, you can also use docker. If you rerun `docker build .` after changing the contracts, it will use a cache for most values, and rerun your tests in a few seconds.
+
+## Formatting
+We use `forge fmt` to format. But follow a few general guidelines beyond the standard:
+- use `_` prefix for function arguments, e.g.,
+  - Don't `function transfer(address to, uint256 amount);`
+  - Do `function transfer(address _to, uint256 _amount);`
+- use `_` prefix for `internal` and `private` functions.
+
+## Contracts:
+
+The contracts are in a very early stage, and don't worry about gas costs right now. Instead they prioritise development velocity.
+
+### Decoder
+Job: Extract values from `L2Block` 
+
+The decoder is a core rollup contract which takes the `L2Block` bytes and computes/extracts values required to:
+1. keep track of the state
+1. perform proof verification
+
+If the structure of the `L2Block` changes, so should the decoder!
+
+### Rollup
+Job: Keep track of state and perform state transitions.
+
+It is the job of the rollup contract to store the state of the rollup and progress it when receiving a new L2 block that is built on top of the current state. 
+
+Currently not running any proofs *nor* access control so blocks can be submitted by anyone and can be complete garbage. 
+
+### UnverifiedDataEmitter
+Job: Share unverified data on chain.
+
+For now, this include bytecode for contract deployment, but over time this will be verified for public functions.