diff --git a/src/helpers/dao.ts b/src/helpers/dao.ts
index 1c63306d..7a8ff3ec 100644
--- a/src/helpers/dao.ts
+++ b/src/helpers/dao.ts
@@ -67,7 +67,7 @@ export const deploySubdao = async (
         },
       },
     },
-    close_proposal_on_execution_failure: false,
+    close_proposal_on_execution_failure: closeProposalOnExecutionFailure,
   };
   const proposalModuleInstantiateInfo = {
     code_id: proposeCodeId,
@@ -164,7 +164,7 @@ export const setupSubDaoTimelockSet = async (
     mockMainDao ? user : daoContracts.core.address,
     daoContracts.proposals.overrule.pre_propose.address,
     securityDaoAddr,
-    false,
+    closeProposalOnExecutionFailure,
   );
 
   const mainDaoMember = new DaoMember(
diff --git a/src/testcases/run_in_band/chain_manager.test.ts b/src/testcases/run_in_band/chain_manager.test.ts
index 93dd5de0..7bd8d44f 100644
--- a/src/testcases/run_in_band/chain_manager.test.ts
+++ b/src/testcases/run_in_band/chain_manager.test.ts
@@ -81,7 +81,7 @@ describe('Neutron / Chain Manager', () => {
       neutronClient,
       mainDao.contracts.core.address,
       securityDaoAddr,
-      false,
+      true,
     );
 
     subdaoMember1 = new DaoMember(