CMA launches review into civil engineering for roads and railways

The Competition and Markets Authority (CMA) has launched a market study into how civil engineering services for road and railway infrastructure are designed, planned and delivered across the UK.
The aim is to identify ways to improve public sector and industry collaboration and deliver better value from infrastructure investment.
This is the CMA’s first market study since the government published its strategic steer for the regulator. The review will follow the CMA’s ‘4Ps’ principles: pace, predictability, proportionality and enhanced process, particularly around effective engagement with stakeholders.
The CMA will assess how infrastructure projects are commissioned and delivered, and whether changes to procurement and regulation could drive more cost-effective and efficient delivery. The study could lead to recommendations to government but does not give the CMA powers to directly intervene.
Civil engineering contributed £23 billion to the UK economy in 2023. The CMA believes the study could help increase productivity, reduce market barriers, and enhance procurement, with potential knock-on benefits such as improved access to jobs and lower transport costs.
The National Infrastructure Commission has called for a 30–50% increase in public and private sector investment over the next decade. However, it noted inefficiencies across the sector, suggesting that system-wide improvements could yield savings of 10–25% on infrastructure projects.
Road and railway schemes account for 70–75% of government spending on economic infrastructure. The study will focus on three main areas:
- Whether public authorities access and use the right data to make sound decisions when commissioning roads and railways, and how well they collaborate with industry to deliver on time and within budget.
- Whether procurement, planning or other regulations create unnecessary barriers that discourage companies from entering, expanding or innovating in the market.
- Whether changes to the overall system could better incentivise civil engineering firms to deliver infrastructure that drives UK productivity and growth.
The CMA says it is well placed to conduct this review from a national and regional perspective, providing a balanced and evidence-led view on how the market operates.
Sarah Cardell, chief executive at the CMA, 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 inviting input from businesses across the civil engineering supply chain, including infrastructure designers and contractors. The study will:
- Aim to complete within 10 months, well within the statutory 12-month period.
- Publish a clear roadmap to help businesses understand how and when to engage.
- Set out priority issues and expected outcomes, updating stakeholders throughout the process.
- Use a variety of engagement methods to gather insight from industry and public clients alike.
Chief Secretary to the Treasury, Darren Jones, said: “Upgrading the country’s economic infrastructure is essential for unlocking growth across the country and delivering our Plan for Change.
“This study will build on our 10-year infrastructure strategy and help us deliver growth with its evidence-based, independent findings.”
The study will cover the entire lifecycle of roads and railways—including enhancements and maintenance—but will exclude privately procured roads, routine maintenance like potholes, and HS2, which has already been extensively reviewed.
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. 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.”
The CMA expects to publish an interim report in November outlining its initial findings.