MID/26/26 Auchendinny Penicuik , Affordable Housing Supply Programme

MIDLOTHIAN COUNCIL

This public procurement record has 1 release in its history.

Award

08 Jun 2026 at 15:33

Summary of the contracting process

The procurement process for the MID/26/26 Auchendinny Penicuik Affordable Housing Supply Programme, led by Midlothian Council, is currently in the award stage. This project, located in Penicuik, aims to meet the high demand for affordable housing in the area. A contract has been negotiated with Bellway Homes to construct 75 social rented units. This contract was awarded using a negotiated procedure without prior publication, in accordance with Regulation 33 (1) (b) of the Public Contracts (Scotland) Regulations 2015, due to the technical necessity and the exclusive rights held by the sellers over the required land. The procurement method used was limited, and the total contract value is £17,273,201.41. The notice was published on 8th June 2026, with a stipulated period of at least 10 days before the contract can be formally awarded.

This tender offers substantial opportunities for growth, particularly for businesses within the construction industry focusing on social housing projects. Companies specialising in housing construction to affordable standards will find this contract particularly advantageous. While the primary contractor, Bellway Homes, is responsible for the primary construction, there may be opportunities for smaller subcontractors to provide specialised services within the construction project. The completion of this housing programme is poised to enhance Midlothian Council's capability to meet local housing needs, potentially leading to further collaboration on similar initiatives as regional authorities increasingly seek to fulfil public service mandates through effective partnerships with established construction firms.

How relevant is this notice?

Notice Title

MID/26/26 Auchendinny Penicuik , Affordable Housing Supply Programme

Notice Description

In terms of Midlothian Council's affordable housing policy, it is noted that the Penicuik area is one of the Council's locations with high demand. As a result the Council requires to secure land within the Penicuik area to assist with meeting that demand and policy ambition and to deliver its Affordable Housing Supply Programme. The area of land at Auchendinny Penicuik owned by BELLWAY HOMES LIMITED incorporated under the Companies Acts, (Registered Number 00670176), having its Registered Office at Woolsington House, Woolsington, Newcastle Upon Tyne, NE13 8BF ("the Sellers) fits with that policy ambition. The contract for the purchase of land is an excluded contract under Regulation 11(1) of the Public Contracts (Scotland) Regulations 2015 (2015 Regulations). The Sellers have included as a condition of the sale of its land that the Council is required to enter into a construction contract with the Sellers for the construction of 75 social rented units on the land being acquired. Without acquiring the land, the Council could not meet its policy in respect of affordable housing in the Penicuik area and the scheme would not be capable of progressing. As a result the Council progressed using the negotiated procedure without prior publication on the basis the works could only be provided by the Sellers on the basis that (i) for technical reasons competition is absent and (ii) the Sellers have exclusive rights in respect of the land and has taken steps within the missives to protect its exclusive rights. There is no reasonable alternative in the Penicuik area. The negotiated procedure without publication was carried out pursuant to Regulation 33 (1) (b) of the 2015 Regulations. Through this negotiated procedure, the Council has ensured that value for money has been achieved. The Council will not award the contract for the period of at least 10 days from the date of publication of this notice and will also issue a contract award notice

Lot Information

Lot 1

In terms of Midlothian Council's affordable housing policy, it is noted that the Penicuik area is one of the Council's locations with high demand. As a result the Council requires to secure land within the Penicuik area to assist with meeting that demand and policy ambition and to deliver its Affordable Housing Supply Programme. The area of land at Auchendinny Penicuik owned by BELLWAY HOMES LIMITED incorporated under the Companies Acts, (Registered Number 00670176), having its Registered Office at Woolsington House, Woolsington, Newcastle Upon Tyne, NE13 8BF ("the Sellers) fits with that policy ambition. The contract for the purchase of land is an excluded contract under Regulation 11(1) of the Public Contracts (Scotland) Regulations 2015 (2015 Regulations). The Sellers have included as a condition of the sale of its land that the Council is required to enter into a construction contract with the Sellers for the construction of 75 social rented units on the land being acquired. Without acquiring the land, the Council could not meet its policy in respect of affordable housing in the Penicuik area and the scheme would not be capable of progressing. As a result the Council progressed using the negotiated procedure without prior publication on the basis the works could only be provided by the Sellers on the basis that (i) for technical reasons competition is absent and (ii) the Sellers have exclusive rights in respect of the land and has taken steps within the missives to protect its exclusive rights. There is no reasonable alternative in the Penicuik area. The negotiated procedure without publication was carried out pursuant to Regulation 33 (1) (b) of the 2015 Regulations. Through this negotiated procedure, the Council has ensured that value for money has been achieved. The Council will not award the contract for the period of at least 10 days from the date of publication of this notice and will also issue a contract award notice

Procurement Information

In terms of Midlothian Council's affordable housing policy, it is noted that the Penicuik area is one of the Council's locations with high demand. As a result the Council requires to secure land within the Penicuik area to assist with meeting that demand and policy ambition and to deliver its Affordable Housing Supply Programme. The area of land at Auchendinny Penicuik owned by BELLWAY HOMES LIMITED incorporated under the Companies Acts, (Registered Number 00670176), having its Registered Office at Woolsington House, Woolsington, Newcastle Upon Tyne, NE13 8BF ("the Sellers) fits with that policy ambition. The contract for the purchase of land is an excluded contract under Regulation 11(1) of the Public Contracts (Scotland) Regulations 2015 (2015 Regulations). The Sellers have included as a condition of the sale of its land that the Council is required to enter into a construction contract with the Sellers for the construction of 75 social rented units on the land being acquired. Without acquiring the land, the Council could not meet its policy in respect of affordable housing in the Penicuik area and the scheme would not be capable of progressing. As a result the Council progressed using the negotiated procedure without prior publication on the basis the works could only be provided by the Sellers on the basis that (i) for technical reasons competition is absent and (ii) the Sellers have exclusive rights in respect of the land and has taken steps within the missives to protect its exclusive rights. There is no reasonable alternative in the Penicuik area. The negotiated procedure without publication was carried out pursuant to Regulation 33 (1) (b) of the 2015 Regulations. Through this negotiated procedure, the Council has ensured that value for money has been achieved. The Council will not award the contract for the period of at least 10 days from the date of publication of this notice and will also issue a contract award notice.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-06b02f
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/053960-2026
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Limited
Procurement Method Details
Negotiated without publication of a contract notice
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

45 - Construction work


CPV Codes

45211100 - Construction work for houses

45211300 - Houses construction work

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£17,273,201 £10M-£100M

Notice Dates

Publication Date
8 Jun 20262 weeks ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
2 Jun 20263 weeks ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Not Specified
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
MIDLOTHIAN COUNCIL
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
DALKEITH
Postcode
EH22 1DN
Post Town
Edinburgh
Country
Scotland

Major Region (ITL 1)
TLM Scotland
Basic Region (ITL 2)
TLM1 East Central Scotland
Small Region (ITL 3)
TLM11 East Lothian and Midlothian
Delivery Location
TLM73 East Lothian and Midlothian

Local Authority
Midlothian
Electoral Ward
Dalkeith
Westminster Constituency
Midlothian

Supplier Information

Number of Suppliers
1
Supplier Name

BELLWAY HOMES

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

JSON Markdown

The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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