Civil engineering: CMA sets out concerns and options for better outcomes

• Evidence to date suggests the market is caught in a cycle of inefficiency, characterised by high costs, and low investment
• CMA has provisionally identified significant opportunities to improve how projects are scoped, planned, procured and regulated to better support UK growth

The Competition and Markets Authority (CMA) has published its interim report as part of its ongoing market study into the civil engineering sector for public road and railway infrastructure.

Civil engineering is fundamental to the UK's economic infrastructure. The CMA is applying its competition lens to examine how supply chains, public procurement, and regulation can be improved to deliver better outcomes for the public and the economy – and to support the government's mission to drive growth and productivity.

This reflects the CMA's commitment, as set out in its strategy, to promote competition, and provide expert advice and recommendations to government, with a particular focus on procurement and regulatory barriers.

The market study follows, and builds on, the work of other bodies – including the National Infrastructure and Service Transformation Authority, which was created in April this year by merging the National Infrastructure Commission (NIC) and the Infrastructure and Projects Authority (IPA). Both organisations have published influential reports on infrastructure costs, planning, and delivery.

In its interim report, the CMA has outlined a number of ways in which the market appears to be delivering poor outcomes – and has provisionally identified several possible options for improvements including in relation to pipeline uncertainty, public procurement policy, capacity constraints and regulatory barriers. These options will be further tested and developed in the remainder of the study.

Sarah Cardell, Chief Executive of the CMA, said:

Transport is vital to the UK economy and the prosperity of households across the country. Civil engineering is key to making sure this network operates effectively – and a well-functioning market helps boost growth and productivity by improving connectivity for businesses and people across the UK.

The CMA is committed to stepping up its role as an enabler of competition. Building on the work of other expert bodies in this field, we're focused on identifying concrete ways to deliver better outcomes in these critical infrastructure markets. Early areas of focus include enhanced competition and innovation in supply chains, through greater opportunities for scaling and removal of regulatory barriers – and more effective public procurement processes. At the same time, we want to enable legitimate collaboration – across government, public authorities and industry – to support investment and growth.

We'll continue our work to develop and refine our initial proposals into a mutually reinforcing package of measures, engaging further with the sector as we do so.

This study, which began in June 2025, is the first since the CMA launched its 4Ps  framework – pace, predictability, proportionality, and process – ensuring a transparent, participative and efficient approach to market analysis and stakeholder engagement.

Provisional view: Persistent challenges and possible remedies

The CMA's analysis to date indicates that the UK's civil engineering market for public roads and railways is caught in a negative cycle – one that is holding back the sector's ability to support UK growth and productivity.

At this stage, the CMA considers the root causes of these issues to include: uncertain and short-term funding, a risk-averse culture, and regulatory barriers to entry and growth, amongst other factors.

As such, in the remainder of the study the CMA will focus on:

• Exploring ways to create a more stable and predictable funding environment, enabling authorities and suppliers to plan and invest for the long term.
• Considering how to strengthen procurement capability across public bodies, ensuring the right skills and expertise are in place to deliver effective contracts.
• Looking at approaches to encourage a more balanced approach to risk, so that procurement practices reward innovation and performance rather than caution.
• Examining opportunities to streamline regulatory processes and accreditations to reduce unnecessary costs and delays, making it easier for firms – especially smaller ones – to enter and grow.
• Identifying ways to foster greater collaboration and consistency across government, public authorities, and industry to drive efficiency and value for money.

Next steps and stakeholder engagement

The CMA is seeking views on the concerns it has identified and the range of options to address these and enable a more competitive, effective market – one where businesses can compete fairly, innovate, and invest with confidence.

The possible remedies outlined in the interim report will be further developed to produce a mutually reinforcing package of measures, alongside ongoing engagement with stakeholders – including government departments, local authorities, public bodies, trade associations, and suppliers – through meetings, webinars, and roundtables. Written submissions can also be made to the CMA and should be submitted by 5:00pm on 28 January 2026.

The CMA plans to develop a set of recommendations for government and public authorities in the final report, due in spring 2026. The CMA remains committed to a participative and transparent process, in line with the 4Ps, and will continue to update stakeholders as the study progresses.

For more information, including how to respond to the consultation, visit the dedicated civil engineering market study page.

Statistics: The market at a glance

• Road and railway projects account for around 70-75% of government spending on economic infrastructure.
• The public sector spends approximately £19 billion a year on maintaining and enhancing public roads and railways (excluding HS2).
• For 2023/24, the total annual expenditure on public roads was around £10.3 billion, and £8.7 billion was spent on railways (CMA estimate).
• In 2023, the civil engineering sector added £23 billion to the UK economy.
• Road Projects: BCG analysis shows that of 48 UK projects, 58% finished late, with an average overrun of 29% when delays occurred.
• Railway Projects: BCG analysis shows that, of 27 UK projects, 56% finished late, with an average overrun of 27% when delays occurred.

Notes to editors

1. Civil engineering is concerned with the design, construction and maintenance of infrastructure which ranges from transport links, access to clean water and sanitation, and electricity and telecommunications networks. This market study is focused on public road and railway infrastructure.
2. In the UK civil engineering market for roads and railways, procurement is the process by which public bodies (like government departments or local authorities) buy construction and engineering services from private companies. Typically, the public body sets out what work needs to be done and invites suppliers to bid for the contract. Suppliers are evaluated on criteria such as price, quality, experience, and ability to deliver. The process is governed by rules and best practice guidelines to ensure fairness, transparency, and value for money.
3. The CMA's market study applies the 4Ps framework (pace, predictability, proportionality, process) to ensure a transparent, participative, and efficient approach.
4. The study covers public road and railway infrastructure across the UK, excluding HS2 and underground/light rail.
5. The interim report is provisional; the Final Report will be published following further evidence gathering and consultation.