diff --git a/bids/modeling/statsmodels.py b/bids/modeling/statsmodels.py
index 279d5b48a..b08e8224e 100644
--- a/bids/modeling/statsmodels.py
+++ b/bids/modeling/statsmodels.py
@@ -4,6 +4,7 @@
 from collections import namedtuple, OrderedDict, Counter, defaultdict
 import itertools
 from functools import reduce
+from multiprocessing.sharedctypes import Value
 import re
 import fnmatch
 
@@ -263,11 +264,11 @@ class BIDSStatsModelsNode:
         overridden if one is passed when run() is called on a node.
     """
 
-    def __init__(self, level, name, transformations=None, model=None,
-                 contrasts=None, dummy_contrasts=False, group_by=None):
+    def __init__(self, level, name, model, group_by, transformations=None,
+                 contrasts=None, dummy_contrasts=False):
         self.level = level.lower()
         self.name = name
-        self.model = model or {}
+        self.model = model
         if transformations is None:
             transformations = {"transformer": "pybids-transforms-v1",
                                "instructions": []}
@@ -279,13 +280,7 @@ def __init__(self, level, name, transformations=None, model=None,
         self.children = []
         self.parents = []
         if group_by is None:
-            group_by = []
-            # Loop over contrasts after first level
-            if self.level != "run":
-                group_by.append("contrast")
-            # Loop over node level of this node
-            if self.level != "dataset":
-                group_by.append(self.level)
+            raise ValueError(f"group_by is not defined for Node: {name}")
         self.group_by = group_by
 
         # Check for intercept only run level model and throw an error
@@ -592,25 +587,18 @@ def __init__(self, node, entities={}, collections=None, inputs=None,
 
         var_names = list(self.node.model['x'])
 
-        # Handle the special 1 construct. If it's present, we add a
-        # column of 1's to the design matrix. But behavior varies:
-        # * If there's only a single contrast across all of the inputs,
-        #   the intercept column is given the same name as the input contrast.
-        #   It may already exist, in which case we do nothing.
-        # * Otherwise, we name the column 'intercept'.
-        int_name = None
+        # Handle the special 1 construct.
+        # Add column of 1's to the design matrix called "intercept" 
         if 1 in var_names:
-            if ('contrast' not in df.columns or df['contrast'].nunique() > 1):
-                int_name = 'intercept'
-            else:
-                int_name = df['contrast'].unique()[0]
-
-            var_names.remove(1)
+            var_names = ['intercept' if i == 1 else i for i in var_names]
+            if 'intercept' not in df.columns:
+                df.insert(0, 'intercept', 1)
 
-            if int_name not in df.columns:
-                df.insert(0, int_name, 1)
-            else:
-                var_names.append(int_name)
+        # If a single incoming contrast
+        if ('contrast' in df.columns and df['contrast'].nunique() == 1):
+            unique_in_contrast = df['contrast'].unique()[0]
+        else:
+            unique_in_contrast = None
 
         var_names = expand_wildcards(var_names, df.columns)
 
@@ -626,7 +614,7 @@ def __init__(self, node, entities={}, collections=None, inputs=None,
 
         # Create ModelSpec and build contrasts
         self.model_spec = create_model_spec(self.data, node.model, self.metadata)
-        self.contrasts = self._build_contrasts(int_name)
+        self.contrasts = self._build_contrasts(unique_in_contrast)
 
     def _collections_to_dfs(self, collections):
         """Merges collections and converts them to a pandas DataFrame."""
@@ -690,17 +678,55 @@ def _inputs_to_df(self, inputs):
                 input_df.loc[input_df.index[i], con.name] = 1
         return input_df
 
-    def _build_contrasts(self, int_name):
-        """Contrast list of ContrastInfo objects based on current state."""
-        contrasts = {}
+    def _build_contrasts(self, unique_in_contrast=None):
+        """Contrast list of ContrastInfo objects based on current state.
+        
+        Parameters
+        ----------
+        unique_in_contrast : string
+            Name of unique incoming contrast inputs (i.e. if there is only 1)
+        """
+        in_contrasts = self.node.contrasts.copy()
         col_names = set(self.X.columns)
-        for con in self.node.contrasts:
-            name = con["name"]
+
+        # Create dummy contrasts as regular contrasts
+        dummies = self.node.dummy_contrasts
+        if dummies:
+            if 'conditionlist' in dummies:
+                conditions = set(dummies['condition_list'])
+            else:
+                conditions = col_names
+
+            for col_name in conditions:
+                in_contrasts.insert(0, 
+                    {
+                        'name': col_name,
+                        'condition_list': [col_name],
+                        'weights': [1],
+                        'test': dummies.get('test')
+                    }
+                )
+
+        # Process all contrasts, starting with dummy contrasts 
+        # Dummy contrasts are replaced if a contrast is defined with same name
+        contrasts = {}
+        for con in in_contrasts:
             condition_list = list(con["condition_list"])
-            if 1 in condition_list and int_name is not None:
-                condition_list[condition_list.index(1)] = int_name
-            if name == 1 and int_name is not None:
-                name = int_name
+
+            # Rename special 1 construct
+            condition_list = ['intercept' if i == 1 else i for i in condition_list]
+
+            name = con["name"]
+            
+            # Rename contrast name
+            if name == 1:
+                name = unique_in_contrast or 'intercept'
+            else:
+                # If Node has single contrast input, as is grouped by contrast
+                # Rename contrast to append incoming contrast name
+                if unique_in_contrast:
+                    name = f"{unique_in_contrast}_{name}" 
+                    
             missing_vars = set(condition_list) - col_names
             if missing_vars:
                 if self.invalid_contrasts == 'error':
@@ -711,31 +737,13 @@ def _build_contrasts(self, int_name):
                 elif self.invalid_contrasts == 'drop':
                     continue
             weights = np.atleast_2d(con['weights'])
+
             # Add contrast name to entities; can be used in grouping downstream
             entities = {**self.entities, 'contrast': name}
             ci = ContrastInfo(name, condition_list,
                               con['weights'], con.get("test"), entities)
             contrasts[name] = ci
 
-        dummies = self.node.dummy_contrasts
-        if dummies:
-            conditions = col_names
-            if 'conditions' in dummies:
-                conds = set(dummies['conditions'])
-                if 1 in conds and int_name is not None:
-                    conds.discard(1)
-                    conds.add(int_name)
-                conditions &= conds
-            conditions -= set(c.name for c in contrasts.values())
-
-            for col_name in conditions:
-                if col_name in contrasts:
-                    continue
-                entities = {**self.entities, 'contrast': col_name}
-                ci = ContrastInfo(col_name, [col_name], [1], dummies.get("test"),
-                                  entities)
-                contrasts[col_name] = ci
-
         return list(contrasts.values())
 
     @property
diff --git a/bids/modeling/tests/test_statsmodels.py b/bids/modeling/tests/test_statsmodels.py
index 97ec62631..722ae6722 100644
--- a/bids/modeling/tests/test_statsmodels.py
+++ b/bids/modeling/tests/test_statsmodels.py
@@ -113,10 +113,22 @@ def test_entire_graph_smoketest(graph):
     cis = list(chain(*[op.contrasts for op in outputs]))
     assert len(cis) == 18
     outputs = graph["participant"].run(cis, group_by=['subject', 'contrast'])
-    # 2 subjects x 3 contrasts
+    # 2 subjects x 3 contrasts)
     assert len(outputs) == 6
+    # * 2 participant level contrasts = 12
     cis = list(chain(*[op.contrasts for op in outputs]))
-    assert len(cis) == 6
+    assert len(cis) == 12
+
+    # Test output names for single subject
+    out_contrasts = [
+        c.entities['contrast'] for c in cis if c.entities['subject'] == '01'
+        ]
+
+    expected_outs = [
+        'gain', 'gain_neg', 'RT', 'RT_neg', 'RT:gain', 'RT:gain_neg'
+    ]
+
+    assert set(out_contrasts) == set(expected_outs)
 
     # Construct new ContrastInfo objects with name updated to reflect last
     # contrast. This would normally be done by the handling tool (e.g., fitlins)
@@ -140,7 +152,7 @@ def test_entire_graph_smoketest(graph):
     assert model_spec.X.shape == (2, 2)
     assert model_spec.Z is None
     assert len(model_spec.terms) == 2
-    assert not set(model_spec.terms.keys()) - {"RT", "gain", "RT:gain", "sex"}
+    assert not set(model_spec.terms.keys()) - {"intercept", "sex"}
 
     # BY-GROUP NODE
     outputs = graph["by-group"].run(inputs, group_by=['contrast'])
@@ -153,7 +165,7 @@ def test_entire_graph_smoketest(graph):
     assert model_spec.__class__.__name__ == "GLMMSpec"
     assert model_spec.X.shape == (2, 1)
     assert model_spec.Z is None
-    assert not set(model_spec.terms.keys()) - {"RT", "gain", "RT:gain"}
+    assert not set(model_spec.terms.keys()) - {"intercept"}
 
 
 def test_expand_wildcards():
diff --git a/bids/tests/data/ds005/models/ds-005_type-test_model.json b/bids/tests/data/ds005/models/ds-005_type-test_model.json
index e234f2c6b..1c369fe82 100644
--- a/bids/tests/data/ds005/models/ds-005_type-test_model.json
+++ b/bids/tests/data/ds005/models/ds-005_type-test_model.json
@@ -25,10 +25,6 @@
                     "Name": "Rename",
                     "Input": "trial_type.parametric gain",
                     "Output": "gain"
-                },
-                {
-                    "Name": "Scale",
-                    "Input": "RT"
                 }
             ],
             "DummyContrasts": {
@@ -53,6 +49,12 @@
                     "ConditionList": [1],
                     "Weights": [1],
                     "Test": "FEMA"
+                },
+                {
+                    "Name": "neg",
+                    "ConditionList": [1],
+                    "Weights": [-1],
+                    "Test": "FEMA"
                 }
             ]
         },
@@ -60,7 +62,8 @@
             "Name": "by-group",
             "Level": "Dataset",
             "GroupBy": [
-                "sex"
+                "sex",
+                "contrast"
             ],
             "Model": {
                 "X": [
@@ -75,7 +78,7 @@
         {
             "Name": "group-diff",
             "Level": "Dataset",
-            "GroupBy": [],
+            "GroupBy": ["contrast"],
             "Model": {
                 "X": [
                     1,