Construction Contract Leads
North East
Category Services
Type Tender
No. of Lots 1
Status Active
Published 19th Oct 2026
| Reference | ocds-h6vhtk-06bd8c |
| Common Procurement Vocabulary | Heating-system design services |
| Procurement Method | Competitive flexible procedure |
| Value | £145,000,000 |
North East
Category Services
Type Tender
No. of Lots 1
Status Active
Published 19th Oct 2026
| Reference | ocds-h6vhtk-06bd8c |
| Common Procurement Vocabulary | Heating-system design services |
| Procurement Method | Competitive flexible procedure |
| Value | £145,000,000 |
Scope
Reference
202606 - GS32
Description
Karbon Homes invites tenders for the design, build, finance, operation and maintenance of the decarbonised Byker District Heat Network in Newcastle upon Tyne. The Byker estate is Grade II* listed, covers around 80 hectares and is live and occupied throughout. There are 1,985 connections, being 1,815 Karbon Homes connections and 170 freeholder and non-domestic connections presently supplied by Newcastle City Council, of which 1,978 are residential and 7 are non residential. The network is served by the Walker Road energy centre and twelve substations.
A preliminary market engagement notice for this procurement, reference 2026/S 000-060054, was published on 25 June 2026. The description of the scheme in that notice has been superseded and tenderers should refer to the information contained within this tender pack.
All documents relating to this tender are available to download from the Panacea e-Sourcing portal.
Submission Instructions:
Electronically via the e-Sourcing portal. Suppliers must submit one copy of their tender electronically, with any additional documents required or requested. Documents must be compatible with Microsoft Office or Adobe/PDF.
Should you require technical support with the e-Sourcing portal please email them directly at:
• Email: support [at] panacea-software.com
• Phone: 0207 976 0116
Tenders must be submitted using the above e-Sourcing portal. Tenders submitted via postal, or email methods will not be accepted.
Total value (estimated)
- £145,000,000 excluding VAT
- £174,000,000 including VAT
Above the relevant threshold
Contract dates (estimated)
- 1 January 2027 to 31 December 2067
- 41 years
Main procurement category
Services
CPV classifications
- 71334000 - Mechanical and electrical engineering services
- 71321200 - Heating-system design services
- 09323000 - District heating
Contract locations
- UKC - North East (England)
Submission
Enquiry deadline
11 November 2026, 5:00pm
Submission type
Tenders
Tender submission deadline
20 November 2026, 12:00pm
Submission address and any special instructions
Tenders may be submitted electronically
Yes
Languages that may be used for submission
English
Award decision date (estimated)
11 December 2026
Award criteria
| Name | Type | Weighting |
|---|---|---|
| F3 Tariff and landlord contribution | Cost | 16% |
| Delivery in a live, occupied, listed estate | Quality | 12% |
| Generation, storage, network and capacity for growth | Quality | 12% |
| Operation, maintenance, lifecycle and handback | Quality | 10% |
| Social Value | Quality | 10% |
| Development to contract close, consents and heritage | Quality | 8% |
| Customers, vulnerability and regulatory compliance | Quality | 8% |
| F2 Financial model | Cost | 6% |
| F4 Pre-construction services contribution | Cost | 5% |
| F5 Delivery stage funding | Cost | 5% |
| F1 Hurdle equity internal rate of return | Cost | 4% |
| F6 Grant drawdown and defrayal | Cost | 4% |
Other information
Applicable trade agreements
- Government Procurement Agreement (GPA)
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Competitive flexible procedure
Special regime
Concession
Competitive flexible procedure description
Stage one RFX Questionnaire will be evaluated on a pass/fail basis and in accordance with the information detailed within the ITT. In instances where a submission is rejected at this point, the Supplier will automatically be disqualified and will not progress to the next stage.
Submissions which have met the minimum standards will be shortlisted and stage two and submissions will be evaluated in accordance with the evaluation assessment process as described below and as set out in the award criteria, within the ITT.
Submissions will be ranked as part of assessment at stage two, only the highest ranked supplier will progress onto stage three. Subject to Board approval the Authorities intension is to enter into a PCSA agreement with the highest ranked supplier, whilst negotiating the final terms of the concession agreement. Any negotiation will be based on the agreement included in the tender pack, and the Authority reservice the right to engage with the next ranked supplier from stage two should any discussion become protracted or in the opinion of the Authority be unlikely to result an agreed contract.
Contracting authority
Karbon Homes
- Public Procurement Organisation Number: PCDL-6326-LXPW
5 Gosforth Park, Gosforth Business Park
Newcastle upon Tyne
NE12 8EG
United Kingdom
Contact name: Chris Smith
Email: chris.smith [at] karbonhomes.co.uk
Region: UKC22 - Tyneside
Organisation type: Public authority - sub-central government
Other organisation
These organisations are carrying out the procurement, or part of it, on behalf of the contracting authorities.
HNDC
Summary of their role in this procurement: ITT preparation and evaluation support.
- Companies House: 15709646
Printing House, 66 Lower Road
Harrow
HA2 0DH
United Kingdom
Contact name: Paul McIver
Email: paul [at] hndc.co.uk
Region: UKI74 - Harrow and Hillingdon
Contact organisation
Contact Karbon Homes for any enquiries.