diff --git a/admin/tool/lp/classes/api.php b/admin/tool/lp/classes/api.php
index d0e88b0b8b2..bb7310e7e30 100644
--- a/admin/tool/lp/classes/api.php
+++ b/admin/tool/lp/classes/api.php
@@ -55,6 +55,9 @@ class api {
         // First we do a permissions check.
         require_capability('tool/lp:competencymanage', $competency->get_context());
 
+        // Reset the sortorder, use reorder instead.
+        $competency->set_sortorder(null);
+
         // OK - all set.
         $id = $competency->create();
         return $competency;
diff --git a/admin/tool/lp/classes/competency.php b/admin/tool/lp/classes/competency.php
index 6bea40760cf..5a2cdb68c8e 100644
--- a/admin/tool/lp/classes/competency.php
+++ b/admin/tool/lp/classes/competency.php
@@ -138,7 +138,7 @@ class competency extends persistent {
                 $this->newparent = $this->get_parent();
 
                 // Update path and sortorder.
-                $this->set_new_path($parent);
+                $this->set_new_path($this->newparent);
                 $this->set_new_sortorder();
             }
 
@@ -146,10 +146,9 @@ class competency extends persistent {
         } else {
 
             $this->set_new_path();
-            if ($this->get_sortorder() === null) {
-                // Get a sortorder if it wasn't set.
-                $this->set_new_sortorder();
-            }
+            // Always generate new sortorder when we create new competency.
+            $this->set_new_sortorder();
+
         }
     }
 
@@ -181,6 +180,15 @@ class competency extends persistent {
                 $this->get_path() . $this->get_id() . '/',
                 $likesearch
             ));
+
+            // Resolving sortorder holes left after changing parent.
+            $table = '{' . self::TABLE . '}';
+            $sql = "UPDATE $table SET sortorder = sortorder -1 "
+                    . " WHERE  competencyframeworkid = ? AND parentid = ? AND sortorder > ?";
+            $DB->execute($sql, array($this->get_competencyframeworkid(),
+                                        $this->beforeupdate->get_parentid(),
+                                        $this->beforeupdate->get_sortorder()
+                                    ));
         }
 
         $this->beforeupdate = null;
@@ -206,6 +214,11 @@ class competency extends persistent {
 
         // And all the links to courses.
         $DB->delete_records('tool_lp_course_competency', array('competencyid' => $this->get_id()));
+
+        // Resolving sortorder holes left after delete.
+        $table = '{' . self::TABLE . '}';
+        $sql = "UPDATE $table SET sortorder = sortorder -1  WHERE  competencyframeworkid = ? AND parentid = ? AND sortorder > ?";
+        $DB->execute($sql, array($this->get_competencyframeworkid(), $this->get_parentid(), $this->get_sortorder()));
     }
 
     /**
diff --git a/admin/tool/lp/classes/course_competency.php b/admin/tool/lp/classes/course_competency.php
index 9e7a7e2ef0f..4a495723fc6 100644
--- a/admin/tool/lp/classes/course_competency.php
+++ b/admin/tool/lp/classes/course_competency.php
@@ -60,12 +60,8 @@ class course_competency extends persistent {
      * @return void
      */
     protected function before_validate() {
-        // During create.
-        if (!$this->get_id()) {
-            if ($this->get_sortorder() === null) {
-                // Get a sortorder if it wasn't set.
-                $this->set('sortorder', $this->count_records(array('courseid' => $this->get_courseid())));
-            }
+        if (($this->get_id() && $this->get_sortorder() === null) || !$this->get_id()) {
+            $this->set('sortorder', $this->count_records(array('courseid' => $this->get_courseid())));
         }
     }
 
@@ -192,4 +188,21 @@ class course_competency extends persistent {
         return $instances;
     }
 
+    /**
+     * Hook to execute after delete.
+     *
+     * @param bool $result Whether or not the delete was successful.
+     * @return void
+     */
+    protected function after_delete($result) {
+        global $DB;
+        if (!$result) {
+            return;
+        }
+
+        $table = '{' . self::TABLE . '}';
+        $sql = "UPDATE $table SET sortorder = sortorder -1  WHERE courseid = ? AND sortorder > ?";
+        $DB->execute($sql, array($this->get_courseid(), $this->get_sortorder()));
+    }
+
 }
diff --git a/admin/tool/lp/classes/plan_competency.php b/admin/tool/lp/classes/plan_competency.php
index f24e58facc8..6f01aa9d395 100644
--- a/admin/tool/lp/classes/plan_competency.php
+++ b/admin/tool/lp/classes/plan_competency.php
@@ -90,7 +90,7 @@ class plan_competency extends persistent {
      * @return void
      */
     protected function before_validate() {
-        if ($this->get_sortorder() === null) {
+        if (($this->get_id() && $this->get_sortorder() === null) || !$this->get_id()) {
             $this->set_sortorder($this->count_records(array('planid' => $this->get_planid())));
         }
     }
@@ -121,4 +121,21 @@ class plan_competency extends persistent {
         return true;
     }
 
+    /**
+     * Hook to execute after delete.
+     *
+     * @param bool $result Whether or not the delete was successful.
+     * @return void
+     */
+    protected function after_delete($result) {
+        global $DB;
+        if (!$result) {
+            return;
+        }
+
+        $table = '{' . self::TABLE . '}';
+        $sql = "UPDATE $table SET sortorder = sortorder -1  WHERE planid = ? AND sortorder > ?";
+        $DB->execute($sql, array($this->get_planid(), $this->get_sortorder()));
+    }
+
 }
diff --git a/admin/tool/lp/classes/template_competency.php b/admin/tool/lp/classes/template_competency.php
index 387b643643a..8dd74eb340c 100644
--- a/admin/tool/lp/classes/template_competency.php
+++ b/admin/tool/lp/classes/template_competency.php
@@ -183,7 +183,7 @@ class template_competency extends persistent {
      * @return void
      */
     protected function before_validate() {
-        if ($this->get_sortorder() === null) {
+        if (($this->get_id() && $this->get_sortorder() === null) || !$this->get_id()) {
             $this->set_sortorder($this->count_records(array('templateid' => $this->get_templateid())));
         }
     }
@@ -214,4 +214,21 @@ class template_competency extends persistent {
         return true;
     }
 
+    /**
+     * Hook to execute after delete.
+     *
+     * @param bool $result Whether or not the delete was successful.
+     * @return void
+     */
+    protected function after_delete($result) {
+        global $DB;
+        if (!$result) {
+            return;
+        }
+
+        $table = '{' . self::TABLE . '}';
+        $sql = "UPDATE $table SET sortorder = sortorder -1  WHERE templateid = ? AND sortorder > ?";
+        $DB->execute($sql, array($this->get_templateid(), $this->get_sortorder()));
+    }
+
 }
diff --git a/admin/tool/lp/tests/externallib_test.php b/admin/tool/lp/tests/externallib_test.php
index 16f6a389586..e19a852885c 100644
--- a/admin/tool/lp/tests/externallib_test.php
+++ b/admin/tool/lp/tests/externallib_test.php
@@ -32,6 +32,7 @@ use tool_lp\plan;
 use tool_lp\related_competency;
 use tool_lp\user_competency;
 use tool_lp\plan_competency;
+use tool_lp\template_competency;
 
 /**
  * External learning plans webservice API tests.
@@ -1512,14 +1513,26 @@ class tool_lp_external_testcase extends externallib_advanced_testcase {
         $competency1 = $this->create_competency(1, $framework->id);
         $competency2 = $this->create_competency(2, $framework->id);
         $competency3 = $this->create_competency(3, $framework->id);
+        $competency4 = $this->create_competency(4, $framework->id);
 
         // Add the competencies.
         external::add_competency_to_template($template->id, $competency1->id);
         external::add_competency_to_template($template->id, $competency2->id);
         external::add_competency_to_template($template->id, $competency3->id);
+        external::add_competency_to_template($template->id, $competency4->id);
+
+        // Test if removing competency from template don't create sortorder holes.
+        external::remove_competency_from_template($template->id, $competency3->id);
+        $templcomp4 = template_competency::get_record(
+                                array(
+                                    'templateid' => $template->id,
+                                    'competencyid' => $competency4->id
+                                ));
+
+        $this->assertEquals(2, $templcomp4->get_sortorder());
 
         // This is a move up.
-        external::reorder_template_competency($template->id, $competency3->id, $competency2->id);
+        external::reorder_template_competency($template->id, $competency4->id, $competency2->id);
         $result = external::list_competencies_in_template($template->id);
         $result = external_api::clean_returnvalue(external::list_competencies_in_template_returns(), $result);
 
@@ -1528,11 +1541,11 @@ class tool_lp_external_testcase extends externallib_advanced_testcase {
         $r3 = (object) $result[2];
 
         $this->assertEquals($competency1->id, $r1->id);
-        $this->assertEquals($competency3->id, $r2->id);
+        $this->assertEquals($competency4->id, $r2->id);
         $this->assertEquals($competency2->id, $r3->id);
 
         // This is a move down.
-        external::reorder_template_competency($template->id, $competency1->id, $competency3->id);
+        external::reorder_template_competency($template->id, $competency1->id, $competency4->id);
         $result = external::list_competencies_in_template($template->id);
         $result = external_api::clean_returnvalue(external::list_competencies_in_template_returns(), $result);
 
@@ -1540,7 +1553,7 @@ class tool_lp_external_testcase extends externallib_advanced_testcase {
         $r2 = (object) $result[1];
         $r3 = (object) $result[2];
 
-        $this->assertEquals($competency3->id, $r1->id);
+        $this->assertEquals($competency4->id, $r1->id);
         $this->assertEquals($competency1->id, $r2->id);
         $this->assertEquals($competency2->id, $r3->id);
 
@@ -2324,8 +2337,18 @@ class tool_lp_external_testcase extends externallib_advanced_testcase {
         $lpg->create_plan_competency(array('planid' => $pl1->get_id(), 'competencyid' => $c4->get_id(), 'sortorder' => 4));
         $lpg->create_plan_competency(array('planid' => $pl1->get_id(), 'competencyid' => $c5->get_id(), 'sortorder' => 5));
 
+        // Test if removing competency from plan don't create sortorder holes.
+        external::remove_competency_from_plan($pl1->get_id(), $c4->get_id());
+        $plancomp5 = plan_competency::get_record(
+                                array(
+                                    'planid' => $pl1->get_id(),
+                                    'competencyid' => $c5->get_id()
+                                ));
+
+        $this->assertEquals(3, $plancomp5->get_sortorder());
+
         $this->assertTrue(external::reorder_plan_competency($pl1->get_id(), $c2->get_id(), $c5->get_id()));
-        $this->assertTrue(external::reorder_plan_competency($pl1->get_id(), $c3->get_id(), $c4->get_id()));
+        $this->assertTrue(external::reorder_plan_competency($pl1->get_id(), $c3->get_id(), $c1->get_id()));
         $plancompetencies = plan_competency::get_records(
                 array(
                     'planid' => $pl1->get_id()
@@ -2337,13 +2360,141 @@ class tool_lp_external_testcase extends externallib_advanced_testcase {
         $plcmp2 = $plancompetencies[1];
         $plcmp3 = $plancompetencies[2];
         $plcmp4 = $plancompetencies[3];
-        $plcmp5 = $plancompetencies[4];
 
-        $this->assertEquals($plcmp1->get_competencyid(), $c1->get_id());
-        $this->assertEquals($plcmp2->get_competencyid(), $c4->get_id());
-        $this->assertEquals($plcmp3->get_competencyid(), $c3->get_id());
-        $this->assertEquals($plcmp4->get_competencyid(), $c5->get_id());
-        $this->assertEquals($plcmp5->get_competencyid(), $c2->get_id());
+        $this->assertEquals($plcmp1->get_competencyid(), $c3->get_id());
+        $this->assertEquals($plcmp2->get_competencyid(), $c1->get_id());
+        $this->assertEquals($plcmp3->get_competencyid(), $c5->get_id());
+        $this->assertEquals($plcmp4->get_competencyid(), $c2->get_id());
+    }
+
+    /**
+     * Test resolving sortorder when we creating competency.
+     */
+    public function test_fix_sortorder_when_creating_competency() {
+        $this->resetAfterTest(true);
+        $lpg = $this->getDataGenerator()->get_plugin_generator('tool_lp');
+        $framework = $lpg->create_framework();
+
+        $c1 = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id()));
+        $c2 = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id(), 'sortorder' => 20));
+        $c3 = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id(), 'sortorder' => 1));
+
+        $this->assertEquals(0, $c1->get_sortorder());
+        $this->assertEquals(1, $c2->get_sortorder());
+        $this->assertEquals(2, $c3->get_sortorder());
+    }
+
+    /**
+     * Test resolving sortorder when we delete competency.
+     */
+    public function test_fix_sortorder_when_delete_competency() {
+        $this->resetAfterTest(true);
+        $this->setUser($this->creator);
+        $lpg = $this->getDataGenerator()->get_plugin_generator('tool_lp');
+
+        $framework = $lpg->create_framework();
+
+        $c1 = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id()));
+        $c2 = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id()));
+        $c2a = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id(), 'parentid' => $c2->get_id()));
+        $c2b = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id(), 'parentid' => $c2->get_id()));
+        $c2c = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id(), 'parentid' => $c2->get_id()));
+        $c2d = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id(), 'parentid' => $c2->get_id()));
+
+        $this->assertEquals(0, $c1->get_sortorder());
+        $this->assertEquals(1, $c2->get_sortorder());
+        $this->assertEquals(0, $c2a->get_sortorder());
+        $this->assertEquals(1, $c2b->get_sortorder());
+        $this->assertEquals(2, $c2c->get_sortorder());
+        $this->assertEquals(3, $c2d->get_sortorder());
+
+        $result = external::delete_competency($c1->get_id());
+        $result = external_api::clean_returnvalue(external::delete_competency_returns(), $result);
+
+        $c2->read();
+        $c2a->read();
+        $c2b->read();
+        $c2c->read();
+        $c2d->read();
+
+        $this->assertEquals(0, $c2->get_sortorder());
+        $this->assertEquals(0, $c2a->get_sortorder());
+        $this->assertEquals(1, $c2b->get_sortorder());
+        $this->assertEquals(2, $c2c->get_sortorder());
+        $this->assertEquals(3, $c2d->get_sortorder());
+
+        $result = external::delete_competency($c2b->get_id());
+        $result = external_api::clean_returnvalue(external::delete_competency_returns(), $result);
+
+        $c2->read();
+        $c2a->read();
+        $c2c->read();
+        $c2d->read();
+
+        $this->assertEquals(0, $c2->get_sortorder());
+        $this->assertEquals(0, $c2a->get_sortorder());
+        $this->assertEquals(1, $c2c->get_sortorder());
+        $this->assertEquals(2, $c2d->get_sortorder());
+    }
+
+    /**
+     * Test resolving sortorder when moving a competency.
+     */
+    public function test_fix_sortorder_when_moving_competency() {
+        $this->resetAfterTest(true);
+        $this->setUser($this->creator);
+        $lpg = $this->getDataGenerator()->get_plugin_generator('tool_lp');
+
+        $framework = $lpg->create_framework();
+
+        $c1 = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id()));
+        $c1a = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id(), 'parentid' => $c1->get_id()));
+        $c1b = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id(), 'parentid' => $c1->get_id()));
+        $c2 = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id()));
+        $c2a = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id(), 'parentid' => $c2->get_id()));
+        $c2b = $lpg->create_competency(array('competencyframeworkid' => $framework->get_id(), 'parentid' => $c2->get_id()));
+
+        $this->assertEquals(0, $c1->get_sortorder());
+        $this->assertEquals(0, $c1a->get_sortorder());
+        $this->assertEquals(1, $c1b->get_sortorder());
+        $this->assertEquals(1, $c2->get_sortorder());
+        $this->assertEquals(0, $c2a->get_sortorder());
+        $this->assertEquals(1, $c2b->get_sortorder());
+
+        $result = external::set_parent_competency($c2a->get_id(), $c1->get_id());
+        $result = external_api::clean_returnvalue(external::set_parent_competency_returns(), $result);
+
+        $c1->read();
+        $c1a->read();
+        $c1b->read();
+        $c2->read();
+        $c2a->read();
+        $c2b->read();
+
+        $this->assertEquals(0, $c1->get_sortorder());
+        $this->assertEquals(0, $c1a->get_sortorder());
+        $this->assertEquals(1, $c1b->get_sortorder());
+        $this->assertEquals(2, $c2a->get_sortorder());
+        $this->assertEquals(1, $c2->get_sortorder());
+        $this->assertEquals(0, $c2b->get_sortorder());
+
+        // Move a root node.
+        $result = external::set_parent_competency($c2->get_id(), $c1b->get_id());
+        $result = external_api::clean_returnvalue(external::set_parent_competency_returns(), $result);
+
+        $c1->read();
+        $c1a->read();
+        $c1b->read();
+        $c2->read();
+        $c2a->read();
+        $c2b->read();
+
+        $this->assertEquals(0, $c1->get_sortorder());
+        $this->assertEquals(0, $c1a->get_sortorder());
+        $this->assertEquals(1, $c1b->get_sortorder());
+        $this->assertEquals(0, $c2->get_sortorder());
+        $this->assertEquals(0, $c2b->get_sortorder());
+        $this->assertEquals(2, $c2a->get_sortorder());
     }
 
 }