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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 01:00

OJEU - F3 - Contract Award Notice
Summary of the contracting process

Midlothian Council’s affordable housing programme requires land at Auchendinny, Penicuik, to support delivery of 75 social rented homes in an area identified as having high housing demand. The procurement covers construction of the homes on land owned by Bellway Homes; the land purchase itself is described as excluded from the public procurement contract. The works include residential building construction (CPV 45211000). The development is intended to help the Council meet its affordable housing policy and supply programme. Delivery is at Auchendinny in the Penicuik area, Midlothian. Bellway’s sale of the land was conditional on the Council entering into a construction contract with Bellway for the 75 homes, linking the land acquisition and building works.

The procurement is complete and the contract was awarded to Bellway - Scotland East. The Council used a negotiated procedure without prior publication, stating that competition was absent for technical reasons, Bellway held exclusive rights over the land, and there was no reasonable alternative in the Penicuik area. The Council reports that the negotiated process secured value for money. One lot covered the works, with cost as the sole stated award criterion. The contract was signed on 24 September 2026 and is active. Its value is £17,273,201. The award record does not state a separate award date or contract period. One bid was recorded for the lot.

This award shows demand from Midlothian Council for delivery of social rented housing as part of its affordable housing programme, including development tied to a specific land acquisition. A credible competitor for similar work would need the capability to build a 75-home residential scheme and to work within the Council’s affordable-housing objectives. The selected supplier was also the landowner, and the Council’s stated rationale was that the land rights and technical circumstances left no reasonable alternative; this made control of the development site central to this procurement. Future suppliers seeking comparable work would therefore need to demonstrate relevant residential construction experience, delivery capacity and a commercially competitive cost offer, while recognising that site ownership or rights can shape the competitive field.

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-r6ebe6-0000843925
Publication Source
Public Contracts Scotland
Latest Notice
https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=SEP565326
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
OJEU - F3 - Contract 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
Complete
Awards Status
Not Specified
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

Notice Documents

  • https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=SEP565326
    MID/26/26 - Auchendinny, Penicuik , Affordable Housing - 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.

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