Planning to erect the new commercial facilities an Investor should be aware that any construction starts not from foundation pit on the construction site but from the project development. Future commercial success depends much on competent development works and on extent to what the project takes account of the business requirements. Mrs. Alla Mahanek, Director of Project Development Department of KARKAS Company, is going to tell about the process of project development works and details to be taken into account by development of logistic facilities.

What are the main stages of logistic center project development?

The first preliminary stage of project development works is Sketch Planning or Feasibility Study. This stage includes definition of the future parameters of the facilities, technological and architectural requirements, engineering system requirements.

The second stage presupposes obtaining of permission for the beginning of development works and collection of inputs (terms of reference and architectural planning specifications, engineering exploration and topographic survey of the site).

Afterwards, the work proceeds with "Project" stage. This stage covers development of architectural planning solutions for the facilities and construction site, scaled-up solutions for engineering network and equipment. The "Project" stage will inevitably undergo approving procedure with state and local authorities. This stage ends with obtaining of permission for construction works.

After the project appraisal, working documentation for the facilities should be elaborated. This documentation shall be transferred to the general contractor which will perform the works. This stage is often considered as ultimate, however, it is followed by the next stage of field supervision.

What should be in the focus of attention in calculations of warehouse and logistic center projects?

Every project is individual. Technology makes substantial impact on the logistic center project. However, even model project should be adjusted to local conditions: construction region, area topography, geological conditions, available resources and many other details. These factors can make drastic changes in the solutions of the model technological concept of the facilities. Such situation can be observed quite often if overseas technology is applied for erection of the facilities in Ukraine for the first time. The priority task for us as developer should be to meet all requirements of the technological process by applying solutions and materials which would comply with the applicable laws of Ukraine.

The key factor to be taken into account by project development is conformity of the project with business technology. It is also important to consider technology of cargo storing and equipment applied since it is underlying for framework of the building, envelop structures, floor etc. It is also necessary to take account of transportation flows, convenient drive-in/drive-out roads, load/unload places, company and customer car and truck parking places. In addition, it is necessary to have in mind driveways of the facilities (there should be sufficient space for vehicles expecting to be allowed to drive in), illumination of the area to be planned in view of vehicles placing pattern and operating hours.

What are the possible project development errors and how can they influence general quality of the facilities?

Quite often so called "project errors" may emerge as a result of commonplace discrepancies among the project sections and construction technology. Each individual solution may be correct but integral project, which is the objective of any Investor, may contain incompatible solutions. If the incompatibilities are discovered before construction works start, it is fraught for an Investor with danger of extended project development period and postponed start of construction works, i.e. postponed putting into operation of the facilities. It is much worse if part of the works has already been performed but discrepancies between the project and construction technology are revealed. As a consequence of project errors, part of solutions should be adjusted to already performed works. Secondly, cost of materials or equipment and construction works rises. The best practices show that the most quality and rational solution is produced when all dimensions of the project are well coordinated: technological need – general construction solutions – engineering systems. Therefore, we devote much time to project development process management since it is the only guarantee of project quality for the Customer.

Are there any uniform project solutions for the warehouse project development?

Naturally, operating on the commercial property market for nearly 8 years we have accumulated experience and there is a range of fundamental solutions which are suitable for majority of logistic facilities. For instance, frameworks with frames of variable cross section, peculiarities of envelop structures which suit perfectly to our climate etc. Uniform solutions are beneficial for the customer not per se but as a result of their rational applying by the developer. Each project needs customized approach in terms of frame size, load specification, type of engineering equipment and many other details.

What is crucial for the project cost?

Before starting project works, a customer, as a rule, is willing to know total cost of the works. Therefore, it is so vital to collect proper inputs, perform engineering exploration, determine terms of reference and ensure Sketch Planning. If all necessary inputs are available it is possible to evaluate scope of the appropriate project works with higher precision and consequently project cost. Availability of the full package of inputs ensures prompt elaboration of solutions and minimizes changes to be introduced by project development and construction, which, in turn, reduces working periods and brings closer putting into operation of the facilities.

What are the ways of choosing developer which can develop a high quality project?

Recently, ever more customers especially those who are experienced in construction recognize project development as essential but not as annoying duty. It is reasonable because developing agency is the team which will co-work with you throughout the whole construction period, just up to putting into operation of the facilities. Quality of the team’s work makes serious impact on the cost and period of construction. Choosing a developing agency it is necessary to pay attention to its specialty and experience of implementation of similar projects. You can request for references or recommendations of the customers. It is vital to check license and specify if the actual staff of the developing agency complies with the license. In the long run, you can ask if the agency applies project engineering technology and composes stage-by-stage schedule of the project implementation; what are the methods of reconciliation of the documentation by related sectors, is there crosscheck of designs etc.

We try to provide transparency of the project development project and easiness of work control for our customers, which inspire them with calm and trustfulness in deadline observation and quality of works.