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The Competition & Markets Authority (CMA) has launched a study into the design, planning and delivery of road and railway infrastructure.

This is the first market study the CMA has launched since the publication of the government’s directed the CMA to focus more on promoting economic growth than restricting anti-competitive behaviour.

The market study will examine whether there are opportunities to improve how the public sector and industry work together, for example through improvements to public procurement, so more cost-effective infrastructure can be built in support of the government’s growth mission. The market study is expected to result in recommendations to government and does not give the CMA the power directly to intervene in the market.

The government hopes that the study will help boost productivity, streamline procurement and reduce barriers to entry across the sector.

The National Infrastructure Commission estimated that public and private sector investment will need to increase by 30-50% over the next decade to deliver more complex infrastructure. However, it highlighted that the sector is not currently operating well; making system-wide improvements could result in savings of 10-25% across infrastructure projects, it said.

Building on evidence collected so far, the review will focus on:

• Ensuring public authorities access and examine the right information to make well-reasoned decisions when procuring roads and railways. It will also consider if they can effectively work with the market to deliver projects on time, to a high quality and within anticipated budgets.
• Assessing if any procurement, planning or other regulatory processes create significant unnecessary barriers which limit companies’ ability and incentive to enter, expand, invest and innovate in this market.
• Examining any changes needed to the way this ecosystem operates to best incentivise and support civil engineering
• firms to deliver public roads and railways in a way that best delivers UK productivity and growth.

Given that they are not being accused of incompetence or collusion, civil engineering contractors are relaxed about the study – enthusiastic, even.

Civil Engineering Contractors Association chief executive Alasdair Reisner said:  “Civil engineering plays a vital role in all our lives, from the largest megaprojects to the smallest local schemes. But in all cases, we must strive to work with our clients to deliver outstanding and affordable results. 

“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. We look forward to working to support this study.”

Competition & Markets Authority chief executive Sarah Cardell said: “There’s no question that reliable, high-quality infrastructure is critical in accelerating economic growth. 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.

“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.”

The CMA is planning a range of ‘engagement channels’ to get the views of a full range of businesses through the civil engineering supply chain as well as public sector clients. It expects to publish an interim report setting out initial findings in November and complete the study by April 2026

The market study will focus on the full life cycle of roads and railways, including their enhancement and maintenance. It will not consider privately procured roads or smaller maintenance activities like potholes. It also excludes HS2 given it has been the subject of multiple reviews already.

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