diff --git a/dev/tools/controllerbuilder/template/controller.go b/dev/tools/controllerbuilder/template/controller.go
index bfc6c77a9d..7d86ce3ba2 100644
--- a/dev/tools/controllerbuilder/template/controller.go
+++ b/dev/tools/controllerbuilder/template/controller.go
@@ -305,3 +305,21 @@ func (a *Adapter) Delete(ctx context.Context) (bool, error) {
 	}
 	return true, nil
 }
+
+func SetStatus(u *unstructured.Unstructured, typedStatus any) error {
+	status, err := runtime.DefaultUnstructuredConverter.ToUnstructured(typedStatus)
+	if err != nil {
+		return fmt.Errorf("error converting status to unstructured: %w", err)
+	}
+
+	old, _, _ := unstructured.NestedMap(u.Object, "status")
+	if old != nil {
+		status["conditions"] = old["conditions"]
+		status["observedGeneration"] = old["observedGeneration"]
+		status["externalRef"] = old["externalRef"]
+	}
+
+	u.Object["status"] = status
+
+	return nil
+}
diff --git a/dev/tools/controllerbuilder/template/externalresource.go b/dev/tools/controllerbuilder/template/externalresource.go
index fc141fee06..aae46b4db0 100644
--- a/dev/tools/controllerbuilder/template/externalresource.go
+++ b/dev/tools/controllerbuilder/template/externalresource.go
@@ -24,7 +24,7 @@ import (
 
 const (
 	// TODO(user): Add service domain
-	serviceDomain = "//{{.KindToLower}}.googleapis.com"
+	serviceDomain = "//{{.Service}}.googleapis.com"
 )
 
 // TODO(user): Define resource identity
@@ -53,9 +53,30 @@ func (c *{{.Kind}}Identity) ExternalRef() *string {
 // BuildIDFromExternal builds a {{.Kind}}Identity from a external reference
 func BuildIDFromExternal(external string) (*{{.Kind}}Identity, error) {
 	// TODO(user): Build resource identity from external reference
+	if !strings.HasPrefix(externalRef, serviceDomain) {
+		return nil, fmt.Errorf("externalRef should have prefix %s, got %s", serviceDomain, externalRef)
+	}
+	path := strings.TrimPrefix(externalRef, serviceDomain+"/")
+	tokens := strings.Split(path, "/")
+
+	// TODO(user): Confirm the format of your resources, and verify it like the example below
+	if len(tokens) != 6 || tokens[0] != "projects" || tokens[2] != "locations" || tokens[4] != "{{.KindToLower}}s" {
+		return nil, fmt.Errorf("externalRef should be %s/projects/<project>/locations/<location>/{{.KindToLower}}s/<{{.KindToLower}}>, got %s",
+			serviceDomain, externalRef)
+	}
+	return &{{.Kind}}Identity{
+		project:    tokens[1],
+		location:   tokens[3],
+		{{.KindToLower}}: tokens[5],
+	}, nil
 }
 
-// BuildID builds a {{.Kind}}Identity from resource components
+// BuildID builds a unique identifier {{.Kind}}Identity from resource components
 func BuildID(project, location string) *{{.Kind}}Identity {
 	// TODO(user): Build resource identity from resource components, i.e. project, location, resource id
+	return &{{.Kind}}Identity{
+		project:    project,
+		location:   location,
+		{{.KindToLower}}: {{.KindToLower}},
+	}
 }
diff --git a/pkg/controller/direct/cloudbuild/workerpool_controller.go b/pkg/controller/direct/cloudbuild/workerpool_controller.go
index 310a6ccbde..7d295ee378 100644
--- a/pkg/controller/direct/cloudbuild/workerpool_controller.go
+++ b/pkg/controller/direct/cloudbuild/workerpool_controller.go
@@ -207,7 +207,7 @@ func (a *Adapter) Create(ctx context.Context, u *unstructured.Unstructured) erro
 		return mapCtx.Err()
 	}
 	status.ExternalRef = a.id.ExternalRef()
-	return direct.SetStatus(u, status)
+	return setStatus(u, status)
 }
 
 func (a *Adapter) Update(ctx context.Context, u *unstructured.Unstructured) error {
@@ -291,7 +291,7 @@ func (a *Adapter) Update(ctx context.Context, u *unstructured.Unstructured) erro
 	if mapCtx.Err() != nil {
 		return fmt.Errorf("update workerpool status %w", mapCtx.Err())
 	}
-	return direct.SetStatus(u, status)
+	return setStatus(u, status)
 }
 
 func (a *Adapter) Export(ctx context.Context) (*unstructured.Unstructured, error) {
@@ -318,3 +318,21 @@ func (a *Adapter) Delete(ctx context.Context) (bool, error) {
 	}
 	return true, nil
 }
+
+func setStatus(u *unstructured.Unstructured, typedStatus any) error {
+	status, err := runtime.DefaultUnstructuredConverter.ToUnstructured(typedStatus)
+	if err != nil {
+		return fmt.Errorf("error converting status to unstructured: %w", err)
+	}
+
+	old, _, _ := unstructured.NestedMap(u.Object, "status")
+	if old != nil {
+		status["conditions"] = old["conditions"]
+		status["observedGeneration"] = old["observedGeneration"]
+		status["externalRef"] = old["externalRef"]
+	}
+
+	u.Object["status"] = status
+
+	return nil
+}
diff --git a/pkg/controller/direct/statusutils.go b/pkg/controller/direct/statusutils.go
deleted file mode 100644
index 7dcc2b965b..0000000000
--- a/pkg/controller/direct/statusutils.go
+++ /dev/null
@@ -1,40 +0,0 @@
-// Copyright 2024 Google LLC
-//
-// Licensed under the Apache License, Version 2.0 (the "License");
-// you may not use this file except in compliance with the License.
-// You may obtain a copy of the License at
-//
-//      http://www.apache.org/licenses/LICENSE-2.0
-//
-// Unless required by applicable law or agreed to in writing, software
-// distributed under the License is distributed on an "AS IS" BASIS,
-// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-// See the License for the specific language governing permissions and
-// limitations under the License.
-
-package direct
-
-import (
-	"fmt"
-
-	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
-	"k8s.io/apimachinery/pkg/runtime"
-)
-
-func SetStatus(u *unstructured.Unstructured, typedStatus any) error {
-	status, err := runtime.DefaultUnstructuredConverter.ToUnstructured(typedStatus)
-	if err != nil {
-		return fmt.Errorf("error converting status to unstructured: %w", err)
-	}
-
-	old, _, _ := unstructured.NestedMap(u.Object, "status")
-	if old != nil {
-		status["conditions"] = old["conditions"]
-		status["observedGeneration"] = old["observedGeneration"]
-		status["externalRef"] = old["externalRef"]
-	}
-
-	u.Object["status"] = status
-
-	return nil
-}