WOLP

PROJECT CLOSURE REPORT FARUKHNAGAR

WELSPUN ONE LOGISTICS PARKS

ASSET MANAGEMENT TEAM

VERSION HISTORY

PROJECT PARTICIPANTS & RESPONSIBILITIES

Shantanu Purandare

EY team

Anay Shukla

Sundaresan Vaidyanathan

Pankaj Bajaj

Arvind

Lokanathan Nadar

Leasing Investments

Finance Bank finance

Corporate Affairs & Approvals

1. FINAL PROJECT SUMMARY

Welspun One's Logistics Park in Farukhnagar is an exemplary warehousing facility located just 10 minutes away from the KMP Expressway and well-connected to the NH8 Delhi-Jaipur highway, catering to the micro-markets of Gurugram and IMT Manesar

The park is tailor-made for one of India's biggest express logistics companies, Ecom Express, with wider columns making the warehouse more spacious, a uni-directional flow ensuring smooth vehicle movement, and an 18-meter-long apron area with two ramps capable of housing 50 trucks at once. To provide a safe haven to staff, the facility has a residential block equipped with necessary amenities

The Logistics Park was constructed in record time of 8 months with custom features like RCC roads, a rainwater harvesting pond, and a dedicated pump room with a two-hour water capacity. The facility is an ideal model for the needs of Ecom Express and is well-connected to major consumption hotspots, making it an excellent location for long-term business growth

1.1 CONTENT SUMMARY

1.1.1 SCOPE

SCOPE

To build a build to suite, 2.8 lakh sq. ft. single box warehouse at a cost of Rs. 63 crore at locationth Farukhnagar. Dry access for the project was considered to be 15 July 2022. The lease rental underwritten th (u/w) was considered to be Rs. 20 psfpm and is to be leased by 14 September 2022. Plinth + Mezzanine Area: 2,90,702 (Plinth is 2,77,556 & Mezzanine is 13,146)

FINAL SCOPE

Built a build to suite, 2.8 lakh sqft single box warehouse at a cost of Rs. 64 crore at locationth Farukhnagar. Dry access for the project was 20 July 2022. The final lease rental was Rs. 21 psfpm and th was leased by 14 September 2022

DESCRIPTION OF CHANGE

Variance in the Budget – due to following reasons

INTERNAL FACTORS

1. Marketing cost worth Rs 18 lakhs which was over and above the budget

2. Soft Costs – Salary of Project and technical team cost; Raincoats and onetime quality audit cost Rs. 7.89 Lakhs

EXTERNAL FACTORS

3. Statutory approvals – Consultancy cost which was not thought through during budgeted worth 69.62 lakhs; Composition fee which was paid towards prisk worth Rs. 13.50 Lakhs; Payment towards statutory fees worth Rs. 705 Lakhs

4. PEB – TI supply works cost increased due to rise in actual price

5. Incoming Power – Extra work due to site conditions worth Rs 14.83 lakhs

1.1.1 SCHEDULE

Stage of Project Key Milestones

Key Milestones

Pre-Development

a. Appointment of consultant for Flood/ Geotechnical

– Quantum

b. Architect appointment (S+V) Design Consultant appointment (PC Design)

c. Statutory consultant appointment (Mr. Nikhil Kinha)

a. Master Plan and concept development

DBR for civil & architecture

15 December 2021 25 December 2021

Design

DBR for Pre Engineered Building

b DBR for Mechanical, Electrical and Plumbing

a. Environment Clearance

b

Consent to Establish

25 December 2021 28 December 2021

Pre-Construction Approvals

c.

Building Plan Approval

. Labor License BOCW d

. Labor License CLRA e

f

Fire Scheme Approval Drawings

15 December 2021 06 May 2022

Procurement of Packages (Tendering)

Contractor Appointment

Detailed Construction Drawings

Construction

. Fire Scheme Approval

g Electricity Connection h.

CLU Approval i.

j.

Pamaesh Report

. Zoning Plan for Warehouse k

a. Tender for Civil package (including early works and compound wall)

b Tender for PEB package

c. Tender for Electrical package & CCTV

d. Tender for FF, FAPA, PHE package

a. Civil works – Onstruq

25 December 2021 03 January 2022

PEB – Interarch

b Electrical & CCTV

25 December 2021 28 March 2022

d.

c. FF, FAPA, PHE

a. Preparation and Approval of Architectural drawings

b. Preparation and Approval of PEB STAAD file & reactions

c. Preparation and Approval of Structural drawings

d. Preparation and Approval of Electrical drawings

e Preparation and Approval - FF, FAPA, PHE drawings

a. Sub Structure: Milestone finish

b

Super Structure: Milestone finish

27 December 2021 31 May 2022

c.

PEB Erection works: Milestone finish

Fire fighting: Milestone finish

e

d. Electrical works: Milestone finish

f

Flooring works: Milestone finish

g.

h.

i.

Roofing: Milestone finish

Road work: Milestone finish

Compound wall works: Milestone finish

11 May 2022 24 September 2022

1.1.1 SCHEDULE

1.1.3 COSTS

1.1.4 KEY CHALLENGES

FINANCE RELATED CHALLENGES:

As on 11 Oct 22, INR 3.72 Cr is available for disbursement out if INR 36 Cr sanction loan and INR 5.25 Cr from equity However, expected payout is nearly 10Cr

There is an increase in commodity prices primarily affecting reinforcement, structural steel, electrical cables, pipes etc

Arrange for fund on priority

M/S Interarch & M/S

Onstruq final invoices have been paid

Adhoc advance has been approved by MD and regional project head to secure the material orders by end of March’22

APPROVALS RELATED CHALLENGES:

Issue Description

Building readiness is getting delayed. OC clearance will take around 30 days as original approved building plan was not followed. One major deviation was mirroring (Changing of mezzanine and apron location from original). After OC clearance CTC clearance will get initiated and it will take another 30 days from then onwards

Commencement of work at site without obtaining the Building plan extension

Action Required

Building readiness and the duration of time for OC and CTC clearances is to be expedited

Remarks

Remarks

OC received on 14-09-2022. CTO application done on 15-09-2022; statutory consultant has been requested to expedite receipt within 20 days of application

Forest NOC for culvert works in Forest land

20-08-2022

EC approval to be revised due to an increase in the Power requirement, DG capacity for the warehouse

Obtain the required approval

Application for revised EC approval has been submitted on 28th April 2022. However, a query was received and response on the same was given and acknowledged on 11th July 2022

No commitment dates received. Government official has visited the site on 26-07-2022 for EC clearances. Approval in written is awaited

12-05-2022

20-05-2022

HT cable needs to be diverted underground at the site entrance. There is a forest area where the culverts are to be laid for diversion of the cable. No start construction works in the forest area a NOC is required

Load sanction approval was scheduled to be received on 05th May 2022, however, due to concerned government official being sick, approval is pending

Obtain the required approval

Objection has been raised by the concerned government authority, M/s Pinnakle is unable to give any timeline for approval. Currently culvert work is in progress

Load sanction approval for the concerned government official

Load Sanction approval received on 23rd May 2022

PROCUREMENT RELATED CHALLENGES:

As per procurement schedule, planned delivery date of STP was 15th June 2022, however revised timelines for delivery as per contractor is 5th July 2022. Delay in delivery will delay the installation of STP and application for OC

As per the contract, vendor needs to submit PBG (5%) of the contract value

Issue of WO's/ CO's to vendors

DESIGN RELATED CHALLENGES:

Delay in the issuance of WO's for Electrical, Firefighting, and Tenant Improvement works to M/s Onstruq impacting the commencement of work

WO's/ CO's have been issued to vendors for their review and signatures

CONSTRUCTION RELATED CHALLENGES:

Drawings of road sections, Fire Tank, Transformer, and DG foundation are yet to be received as the comments shared by PC design team are pending to be addressed by S+V

Delay of 36 days in Block development works and 48 days in external development works due to delay in preparation and approval of GFC drawings and inadequate manpower

submit a catch-up plan with resource histogram

Currently there is a delay of 21 days, 36 days and 44 days in Building development, ancillary building and external development works

CONSTRUCTION RELATED CHALLENGES:

Flooring works inside the warehouse were to commence on 20th April 2022, but due to a delay in commencement of works for roof sheeting and cladding works (planned date of commencement of roof sheeting works was 13th April 2022, actual work start date 18th April, whereas cladding works are yet to begin (planned commencement date 15th April 2022)

Roof sheeting and wall cladding works are running behind schedule, delay of 13 days and 17 days respectively. This may result in stopping the flooring works, due to building not covered (exposure to sunlight, dust, heat etc.)

Immediate mobilize resources for both roof sheeting and cladding works

RemarksRemarks

Ground floor handing over is balance

Driver room & Toilet (1st floor) finishing is in progress. Snags are balance

The PBG expiry date for M/S Onstruq is 31-07-2022 which needs to be extended till the anticipated project completion date

Vendor has committed to increase manpower in roof sheeting and cladding works to 50 numbers from present strength of 27

Flooring works have commenced on 02nd May 2022

PBG needs to be extended for the duration of work which is pending till the final bill is certified

Current manpower strength at 70+

Project team has been informed for the extension of PBG. Contractor has confirmed the date as 05-08-2022 for sharing the revised PBG

Expiry of PBG for M/S Onstruq

CONSTRUCTION RELATED CHALLENGES:

Issue Description

There are supply chain issues at Interarch’s Rudrapur facility. Presently, material is being supplied from Kichha facility. 51 MT of secondary members (rafters & PEB accessories) are fabricated at Rudrapur facility ready to be delivered, however, due to High court orders the facility is locked and material loading is not possible

Action Required

Clarity if material from Rudrapur facility can be transported or fabrication of material needs to be done again at Kichha facility

RemarksRemarks

MANPOWER RELATED CHALLENGES:

Issue Description

Manpower not being deployed by the Civil vendor as per the resource histogram resulting in delayed works

Action Required

Increase manpower as per plan to mitigate delays

RemarksRemarks

Vendor is unable to increase manpower, delays in completion of works are increasing

Slow progress of Louver fixing, Canopy installation and Day light panel fixing

There are over 100 labours at site engaged in construction activities without BOCW and CLRA registration

Due to manpower shortage, progress of Louver fixing, canopy installation on the apron side and Day light panel fixing is running behind schedule. This is required to be ready for complete dry access to Ecom on 15th July 2022

Progress of Road RCC work is delayed due to lesser manpower deployed by the contractor

Submission of application

Increase manpower as per dates for completion

Work on canopy erection, Day light panel installation and Louvers installation has commenced

Vendor has been asked to increase sub-vendor count to catch-up on delays.

M/S Onstruq has committed dates for completion as 20-08-2022

MANPOWER RELATED CHALLENGES:

Issue

Action Required

RemarksRemarks

Delay in boundary wall construction.

31-08-2022

Retaining wall completion (North & South side) is delayed due to labor shortage. Y channel fixing is in progress and concertina fixing is in progress

Vendor has committed increase manpower for the completion of retaining wall (North and South side).

Commitment date required from M/S Onstruq

1.1.5 COMMUNICATION STRATEGY AND METHODS

A. At Site:

Work in progress and M/S Onstruq has committed dates for completion as 10-09-2022

Project Review Meetings – A monthly project review was held every month, where the key aspects of the projects were presented to all senior stakeholders relevant to the project by the Chief Development Officer Also, resolutions were arrived at for any issues cropping up in the project

Project Dashboard – A dashboard was created by PMO team, giving out the highlights of all projects, along with the key aspects of all projects from a construction, leasing, approvals and cost point of view

Weekly Meeting with Contractors and Vendors – A weekly meeting was organized by project manager/ construction manager to review the project progress which includes week’s progress, major issues & challenges, individual commitment dates for the handover and catch-up plan for the delayed activities

Safety, Quality and Progress – In addition to the above meeting, Weekly Safety and quality meeting was conducted to discuss on the major safety and quality issues and concerns with the vendor

B. Between Site & HO:

Weekly PMO meeting – A weekly meeting was organized by the PMO team every week where key stakeholders of the projects were run through the project key highlights and the existing issues

1.2 LESSONS LEARNED

Cost:

1. Densification of the FM2 flooring could have been avoided if the tenant was not demanding

2. Mezzanine flooring could have been completed in RCC slab in place of FM3 if the tenant was not demanding

3. Drain which was made in RCC could have been made in pre-cast

4. All infra-Road in bitumen in place of RCC

Construction Timeline:

1. Some of the works which could have been avoided to save time:

Densification work for FM2 flooring inside the warehouse

Mezzanine flooring could have been made in RCC slab in place of FM3 flooring

Waffle wall work could have been made in place of Block masonry work

All infra Road could have been made in bitumen in place of RCC

2. Rain water pond, plumbing work, road preparation, all utility crossing, utility block, and ancillary building could have started in the initial stage before monsoon. Densification work for FM2 flooring inside the warehouse

3. Cladding work should have been started with roof PEB work

4. Road and FM2 flooring design should have been closed in project initial stage

5. Independent electrical feeder work could have been started in initial and completed in middle stage of the project

6. Provision for Glasswool material storage could have been made in better way to avoid wastage

Delivery Optimization

Leasing Timeline – xxxxxxxxxxxxxxxxx

Customer Interfacing – xxxxxxxxxxxxxx

Approvals – xxxxxxxxxxxxxxxx

1.3 LEARNING OUTCOMES

FINANCE RELATED CHALLENGES:

Title

Shortfall of funds for vendor payments

Issue Description

As on 11 Oct 22, INR 3.72 Cr is available for disbursement out of INR 36 Cr sanction loan and INR 5.25 Cr from equity. However, expected payout is nearly 10 Cr

Learning Perspective

Arrangement of additional buffer fund is to be ensured to avoid any shortfall of funds

Financial risk due to Increasing commodity prices

There is an increase in commodity prices primarily affecting reinforcement, structural steel, electrical cables, pipes etc

All contracts with advance/ Adhoc payments need to be released on priority as per the agreed contract agreement to avoid any amendments due to price escalations

APPROVALS RELATED CHALLENGES:

Title

Issue Description

Delay in OC and CTO clearances

Building readiness is getting delayed. OC clearance will take around 30 days as original approved building plan was not followed. One major deviation was mirroring (Changing of mezzanine and apron location from original). After OC clearance CTC clearance will get initiated and it will take another 30 days from then onwards

Learning Perspective

Timely preparation and submission of all required documents to initiate OC and CTO clearances. Building readiness and the duration of time for OC and CTO clearances is to be expedited

Delay in getting the building plan extension

Commencement of work at site without obtaining the building plan extension

Preparation and submission of all required documents as per set baselines to attain approvals

Revised EC & CTE

EC approval to be revised due to an increase in the Power requirement, DG capacity for the warehouse

Preparation and submission of all required documents as per set baselines to attain approvals

Forest NOC for culvert works in Forest land

HT cable needs to be diverted underground at the site entrance. There is a forest area where the culverts are to be laid for diversion of the cable. No start construction works in the forest area a NOC is required

Timely preparation and submission of all required documents to attain approvals

Delay in getting Electricity department approval for Incoming power

Load sanction approval was scheduled to be received on 05th May 2022, however, due to concerned government official being sick, approval is pending

PROCUREMENT RELATED CHALLENGES:

Title

Issue Description

Timely issue of main electrical work order along with all required statutory documents with main electrical vendor to ensure timely load sanction approvals from the concerned government officials

Delay in supply of STP, Façade glass, rolling shutter and Fire doors

1. As per procurement schedule, planned delivery date of STP was 15th June 2022, however revised timelines for delivery as per contractor is 5th July 2022. Delay in delivery will delay the installation of STP and application for OC

2. Delay in procurement of glass has led to the delay in completion of facade work

3. Procurement of Rolling shutters and Fire doors are delayed. Installation dates as per schedule are 22nd April & 19th April 2022 respectively

Learning Perspective

Procurement needs to ensure that all brought out items in the vendor’s scope should have approved specs/make as per the location wise to avoid any delays due to unavailability in that location

Delay in submitting the PBG by the vendor

As per the contract, vendor needs to submit PBG (5%) of the contract value

Timely reminders and follow-ups from the vendors are to be ensured for timely submission of PBG

PROCUREMENT RELATED CHALLENGES:

Title

Issue of WO's/ CO's to vendors

Issue Description

Delay in the issuance of WO's for Electrical, Firefighting, and Tenant Improvement works to M/s Onstruq impacting the commencement of work

DESIGN RELATED CHALLENGES:

Title

Delay in receipt of GFC drawings

Issue Description

Delay in GFC drawings of road sections, Fire Tank, Transformer, DG foundation, boundary wall and Plinth beam

CONSTRUCTION RELATED CHALLENGES:

Title

Issue Description

Delay in Warehouse completion and residential building readiness

1. Delay of 36 days in Block development works and 48 days in external development works due to delay in preparation and approval of GFC drawings and inadequate manpower

2. Driver Room & Toilet (1st floor) finishing was delayed

3. Pond work was delayed due to delay in excavation, Lining, stone pitching and fencing work

Learning Perspective

Timely issue of signed WO's to avoid any delays as per set baseline dates

Learning Perspective

Timely coordination with vendors and design consultants for drawing preparation and approvals as per the approved baseline dates

Learning Perspective

Timely issue of signed WO's to avoid any delays as per set baseline dates. In addition to this, LD clause need to be incorporated for individual building completion timelines

Delay in commencement of Flooring works due to delay in PEB installation works

Flooring works inside the warehouse were to commence on 20th April 2022, but due to a delay in commencement of works for roof sheeting and cladding works

Timely mobilization of resources for both roof sheeting and cladding works to ensure flooring works without any interruptions due to monsoon rains

Slow Progress of roof sheeting and wall cladding works Expiry of PBG for M/S Onstruq

Roof sheeting and wall cladding works are running behind schedule, delay of 13 days and 17 days respectively. This may result in stopping the flooring works, due to building not covered (exposure to sunlight, dust, heat etc.)

The PBG expiry date for M/S Onstruq is 31-07-2022 which needs to be extended till the anticipated project completion date

Vendor has committed to increase manpower in roof sheeting and cladding works to 50 numbers from present strength of 27

PBG needs to be extended for the duration of work which is pending till the final bill is certified

CONSTRUCTION RELATED CHALLENGES:

Title

Issue Description Learning Perspective

Delay in delivery of PEB material

There are supply chain issues at Interarch’s Rudrapur facility. Presently, material is being supplied from Kichha facility. 51 MT of secondary members (rafters & PEB accessories) are fabricated at Rudrapur facility ready to be delivered, however, due to High court orders the facility is locked and material loading is not possible

MANPOWER RELATED CHALLENGES:

Title

Manpower not deployed as per resource histogram

Clarity if material from Rudrapur facility can be transported or fabrication of material needs to be done again at Kichha facility

Issue Description Action Required

Manpower not being deployed by the Civil vendor as per the resource histogram resulting in delayed works

Procurement team to ensure that vendor finalized for the works should have commitment on manpower mobilization and skilled staff to execute works in line with the set baseline dates

Delay in getting BOCW & CLRA registration

There are over 100 labours at site engaged in construction activities without BOCW and CLRA registration

Timely submission of revised application is to be ensured from statutory consultant so that the changes get incorporated

Slow progress of Louver fixing, Canopy installation, Day light panel fixing, PQC road and boundary wall works

Due to manpower shortage, progress of Louver fixing, canopy installation on the apron side, Day light panel fixing, PQC road and boundary wall work was running behind schedule

1.4 PROJECT PERFORMANCE SUMMARY

Prior vendor commitment is to be taken for manpower and resource mobilization as per the set project baseline completion date and further follow-ups and escalations required for any deviations for the same

This section details how well the team communicated, collaborated, and performed tasks throughout the project.

1.5 CRITICAL THINKING REVIEW

This section highlights the team’s approach to problem-solving in various situations throughout the project. Use the field below to outline specific examples and methods you used.

FUTURE DIRECTIONS

SR. NO Identified Risks

Awaiting Image

1. Delay in the receipt of Pre-construction approvals

Risk Description

Commencement of construction works without preconstruction approvals may result in an intervention from the authority impacting the handover timelines due to stoppage of work and project budget due to heavy fines.

Future planned actions

2. Delay in completion and handover of external Infra works

Delay in external Infra works committed handover targets due to delay in design submission & approval, manpower /machinery & material shortage, supply chain disruptions, material damage, design change, design failure, delay in vendor finalization

Detailed planning and commitment of dates for pre-construction approvals from statutory consultant can help to monitor the approvals progress and avoid any delays.

1. Better planning of infra-activities execution can help to avoid any delays:-

Rain water pond, plumbing work, road preparation, all utility crossing, utility block, and ancillary building is to be started in the initial stage before monsoon

Independent electrical feeder work is to be started in initial and completed in middle stage of the project

2. Road design is to be closed in project initial stag

FUTURE DIRECTIONS

Risk Description

Future planned actions

3. Delay in completion and handover of main building

Delay in main building as per tenant committed handover timelines due to delay in design submission & approval, manpower /machinery & material shortage,  supply chain disruptions, material damage, design change, design failure, delay in vendor finalization, procurement delays, etc.

1. Better planning of main building activities can help to avoid any delays:-

Cladding work is to be started with roof PEB work All flooring work to be completed before monsoon or after the completion of PEB works to avoid any damage

2. All design drawings need to be released before the start of work to avoid any delays due to rework or work stoppages due to drawing changes

4. Delay in submission of statutory labour compliances

Due to the nonsubmission of labour Statutory documents like PF, ESIC etc. along with invoices may result in an intervention from the authority impacting the handover timelines due to stoppage of work and project budget due to heavy fines

Timely submission of all the required documents for statutory compliances need to be ensured from start of the project to avoid any work stoppages and project budget due to heavy fines.

5. Delay in permanent power works

Due to denial from electricity board on the load sanction application from already proposed power source, Diversion of HT cable (elevated to underground), forest NOC, etc.

1. Work order for permanent power is to be released during initial stage of the project

2. All required statutory documents need to be submitted to the vendor to initiate timely approvals for load sanctions

3. Firm commitment dates from the vendor and follow up of the same need to be taken to ensure timely completion of work

6. Delay in the receipt of Post construction approvals for building

Delay in committed handover timelines due to delay in receiving post construction approvals like Fire NOC, OC and CTO, further impacting the lease.

Timely completion of construction work is to be ensured to initiate and complete the post construction approvals. Minimum, Post construction approval timeline of around 3 months is to be considered in the baseline plan.

7. Cashflow risk

Delay in vendor payment due to insufficient funds

Timely work completion as per the set baseline dates is to be ensured to avoid any cash flow issues.

2. ANNOTATED BIBLIOGRAPHY

Awaiting Details

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