The UK’s Competition and Markets Authority (CMA) has called for changes to the way road and rail infrastructure projects are planned and procured, stating that current systems are increasing costs, delaying delivery and limiting innovation.
The recommendations were published following an 11-month market study into civil engineering across the public road and rail sectors.
The CMA said fragmented decision-making, funding uncertainty and short-term procurement practices were contributing to inefficiencies in infrastructure delivery. Around 19 billion GBP was spent on public road and railway infrastructure in 2023/24, excluding HS2.
CMA recommends overhaul of road and rail procurement to cut costs and drive economic growth through infrastructure investment
© Canva
External research referenced in the regulator’s report suggested governments across the UK could save up to 5 billion GBP annually if procurement and delivery practices were improved.
Sarah Cardell, Chief Executive of the CMA, said:
Our work on civil engineering shows that a short-term and fragmented approach to procurement in road and rail is driving up costs, slowing delivery and holding back innovation.
This is an opportunity for systemic change – but it requires strong central coordination, and a reframing of road and rail procurement as a lever for growth and innovation. The CMA will continue to play its part, bringing independent advice, analysis and practical solutions to drive economic growth.
Among its recommendations, the CMA said HM Treasury should take responsibility for overseeing wider changes across the sector, reflecting its role in infrastructure funding and strategy.
The regulator also called for the UK Government, working with the devolved administrations in Scotland, Wales and Northern Ireland, to publish a long-term strategic plan for civil engineering in the road and rail sectors and provide annual progress updates.
Other recommendations included introducing clearer multi-year project pipelines, reforming procurement practices to encourage competition and innovation, and improving skills and capacity within public bodies responsible for commissioning infrastructure projects.
The CMA said these measures could help firms invest in staff, technology and long-term capacity by providing greater certainty over future work.
The report also argued that lessons from the road and rail sectors could be applied more widely across public infrastructure procurement.
Ben Goodwin, Director of Policy and Public Affairs for the Civil Engineering Contractors Association, said:
By calling for the UK and devolved governments to set a strategic direction for infrastructure, the CMA’s recommendations show a clear path towards greater pipeline visibility, more efficient procurement, and better outcomes for businesses, communities, and the wider economy.
We strongly support the CMA’s conclusion that reforming the civil engineering market can deliver a powerful multiplier effect: improving value for money from public investment, strengthening supply chain confidence, and making the UK a more attractive place to invest.
We look forward to working with our members, clients, and industry stakeholders to ensure this report acts as a catalyst for the reform that is needed – supporting growth, creating jobs, and delivering world-class infrastructure for the 21st century.