INTERVIEW: P3 fast-tracks construction for speedy delivery

Logistics developer P3 aims to introduce fast-track construction processes for customers which require a speedy delivery of a new warehouse.

As the pressure for timely delivery mounts, P3 has embarked on a search for new building techniques in an effort to shorten construction times, P3 CEO Ian Worboys told PropertyEU in an interview.

During his time at previous employer Gazeley, Worboys and P3's current development director Terry Chung sought expertise from outside the sector and brought together specialists from industries spanning car manufacturing and aeroplane engineering to pool know-how and optimise construction processes, Worboys said.

‘All these experts had experience with just-in-time construction in different industries, for example for Formula 1 racing cars. Together with our own team this led to a discussion about how many fixed components there are in a warehouse and how we could develop a fast track for construction.’

Pre-planning stage
A key recommendation that emerged from the discussion was the need to focus more attention on the pre-planning stage and to mechanise procedures where possible. Another centred on reducing the number of different components and enlarging the size of panels used in a facility. The P3 team is aiming to follow a similar route in the next 12 months which will include discussions with the company’s existing and potential suppliers to enlist their support in turning ideas to fast-track developments into practice, Worboys said.

‘Our suppliers are also becoming more and more efficient and using more sophisticated processes and higher quality materials. This process will enable us to scale up supplies and negotiate new contracts. You can get a better deal if you have greater buying power.’

A fast-track process translates into a shorter construction period than the normal six months that is common for a standard 20,000 m2 warehouse, Worboys said. ‘During the construction of a warehouse we monitor time scales on a daily basis to see if there is any delay in the programme. But if we are building fast-track, we would be monitoring on a two-hourly basis.’

Timely delivery is an important consideration, but not the only one, Worboys noted. ‘There’s a cost implication for fast construction, normally customers would pay a 5% premium if we build a facility really fast. And our customers and tenants don’t always need to receive a facility in the shortest possible time. On the whole our customers are more interested in reducing their operating costs during the lifecycle of their operation. On that front a saving of 10% can really make a difference. It’s about finding the right balance.’

In that context, energy consumption is a key area where savings can be generated, Worboys said. ‘Energy prices are cheaper now, but the question is for how long?’

Eco-friendly features
Top quality Class A warehouses generally incorporate all the modern features that required by customers as well as eco-friendly features wherever possible, he added. 'We ensure that the buildings are well-insulated, well-lit and fit for purpose. As a long-term owner and investor, P3 does not cut corners, we build warehouses that are “future-proofed” for our customers.'

One way of reducing energy costs is by using ‘smarter’ components, Worboys said. ‘By using thicker insulation you can reduce the amount of heat lost. We use LED lighting where we can fit it which generates a very simple payback. Low-flush toilets already help to reduce water usage on a household scale, imagine using it on an industrial scale. The savings are even greater.’

Another example where P3 has succeeded in cutting operating costs is in the sprinkler installations. By using percussive taps, the developer has been able to generate water usage savings of some 40%, Worboys said. ‘The whole world is becoming faster, but our customers also need to balance cost versus speed.’

The new construction procedures and building techniques have proven so beneficial that P3 is now introducing them throughout the organisation, Worboys said. ‘In the last 12 months or so, we have engaged in sharing the knowledge across our operations in seven of the nine countries where we have active development in the CEE region.’

Altogether P3 now has a total warehouse portfolio of 2.9 million m2 while the land bank can accommodate over 1.3 million m2 of new warehouse space mainly in Poland, Romania, the Czech Republic and Slovakia.