The UK Competition and Markets Authority (CMA) has launched a market study into the civil engineering sector for road and rail infrastructure, aiming to identify opportunities to improve project delivery and reduce costs in support of the government’s long-term growth and infrastructure strategies.
The study, the first initiated since the publication of the government’s strategic steer for the CMA, will assess how the public sector and industry collaborate in delivering economic infrastructure. The CMA intends to make recommendations to government based on its findings, though it does not have direct powers to intervene.
The review will examine whether procurement and planning processes create unnecessary barriers for firms and assess how market conditions could be improved to enhance productivity, increase efficiency, and deliver better value for taxpayers.
“This review is a crucial step in identifying barriers holding back the sector – supporting the drive to get Britain building and ensuring every penny spent is delivering value for taxpayers,” said CMA Chief Executive Sarah Cardell. “To achieve this, public authorities and the civil engineering sector must be able to work together to deliver projects on time, within budget and to high standards.”
The civil engineering sector contributed GBP 23 billion to the UK economy in 2023. According to the National Infrastructure Commission, public and private investment will need to increase by 30–50% over the next decade to meet infrastructure targets, but better system-wide practices could cut project costs by up to 25%.
Road and rail projects currently account for 70–75% of government spending on economic infrastructure. The CMA’s study will focus on improving decision-making in procurement, identifying any regulatory or operational barriers, and determining changes that could support industry innovation and growth.
“This study will build on our 10-year infrastructure strategy and help us deliver growth with its evidence-based, independent findings,” said Chief Secretary to the Treasury Darren Jones.
The CMA will take into account national and regional perspectives and work closely with stakeholders. Its approach will reflect its ‘4Ps’ principles: pace, predictability, proportionality, and enhanced process. The study is expected to conclude within 10 months, ahead of the statutory 12-month deadline, with a roadmap and interim report scheduled for publication in November.
Industry bodies have welcomed the initiative. Alasdair Reisner, Chief Executive of the Civil Engineering Contractors Association, said: “Civil engineering plays a vital role in all our lives, from the largest megaprojects to the smallest local schemes. We welcome the CMA’s focus on how more productive delivery of civil engineering can secure better outcomes and help the government meet its ambitions for growth.”
The review will cover the full lifecycle of publicly funded road and rail projects, including construction, enhancement, and maintenance. However, privately procured roads and smaller maintenance activities such as pothole repairs are excluded. The HS2 project will also not be considered, given its previous scrutiny.
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