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MID/26/26 - Auchendinny, Penicuik , Affordable Housing

Midlothian Council

This public procurement record has 1 release in its history.

Award

25 Sep 2026 at 14:48

Award Notice
Summary of the contracting process

Midlothian Council’s affordable housing programme required land in Auchendinny, Penicuik, to help meet high local demand for social housing. The land was owned by Bellway Homes, whose sale condition required the Council to award the same company a construction contract for 75 social rented homes on the site. The procurement therefore covers construction of a 75-home social housing development, alongside the land purchase needed to make the scheme possible. The development is in Auchendinny, Penicuik, in Midlothian. The Council’s stated purpose is to deliver its Affordable Housing Supply Programme and meet its affordable housing policy for the Penicuik area.

The procurement is complete and the contract has been awarded to Bellway - Scotland East; the contract is active and was signed on 24 September 2026. Its value is £17,273,201. The procurement used a negotiated procedure without prior publication, on the stated grounds that technical reasons prevented competition and Bellway held exclusive rights to the land, with no reasonable alternative in the Penicuik area. The buyer says value for money was achieved through negotiation. Cost was the sole award criterion, weighted at 100%. One bid was recorded. The process was treated as a single lot, and the contract covers construction of 75 social rented units on the land being acquired.

For suppliers considering comparable work for Midlothian Council, this award demonstrates demand for the delivery of social rented housing as part of its affordable housing programme in Penicuik. A credible competitor would need the capacity and experience to construct a 75-home residential development and, where the requirement is tied to a particular site, a viable route to securing or controlling that land. This procurement was awarded to the seller of the site after the Council concluded that technical constraints and exclusive land rights left no reasonable alternative, so construction capability alone was not sufficient to compete for this particular arrangement. Cost was the entire stated evaluation basis, making the ability to offer value for money central to the Council’s decision.

How relevant is this notice?

Notice Information

Notice Title

MID/26/26 - Auchendinny, Penicuik , Affordable Housing

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 has now awarded the contract to BELLWAY HOMES LIMITED.

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 has now awarded the contract to BELLWAY HOMES LIMITED.

Procurement Information

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.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-077abb
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/091065-2026
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Limited
Procurement Method Details
Award procedure without prior publication of a call for competition
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

45 - Construction work

CPV Codes

45211000 - Construction work for multi-dwelling buildings and individual houses

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
25 Sep 20261 weeks ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
Not specified
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Cancelled
Awards Status
Active
Contracts Status
Active

Buyer & Supplier

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
Postcode Area
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
TLM Scotland
Local Authority
Midlothian
Electoral Ward
Dalkeith
Westminster Constituency
Midlothian

Supplier Information

Number of Suppliers
1
Supplier Name

Bellway - Scotland East

Further Information

Open Contracting Data Standard (OCDS)

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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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