The Competition and Markets Authority (CMA) has launched a 10-month market study into the civil engineering sector’s role in designing and delivering railway and public road infrastructure.
The inquiry will assess whether the sector is functioning effectively and how it can better support economic growth, with a focus on rail and road projects that accounted for up to 75 per cent of government infrastructure spending in 2022.
The study excludes High Speed 2 and light rail projects but will cover the entire project life cycle of publicly procured schemes, including planning, procurement, construction and large-scale maintenance.
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.”
The CMA said the review is intended to improve project delivery, enhance competition and support better outcomes for both the public sector and the supply chain.
It will focus on barriers to market access and expansion, procurement practices, regulatory hurdles and information gaps that affect decision-making and project performance.
The watchdog will consider whether current procurement structures encourage innovation and competitiveness, and whether changes to risk allocation, evaluation criteria and contract design could reduce costs or delays.
Recommendations could include changes to how public authorities interact with the market, but the CMA does not currently expect the review to result in a full market investigation.
The study follows a series of reports that criticised the sector’s slow productivity growth, fragmented supply chains and high delivery costs compared to international peers.
The CMA cited the National Infrastructure Commission’s estimate that system-wide improvements could yield savings of up to 25 per cent on infrastructure projects.
Engagement with contractors, consultants, regulators and public authorities will form a core part of the process. The CMA plans to publish a final report by April 2026.
