Are civil engineers playing fair? CMA investigates UK infrastructure
July 2025Introduction
On 19 June 2025, the Competition and Markets Authority (CMA) launched a market study into the design, planning, and delivery of railway and public road infrastructure within the civil engineering sector. The CMA is inviting submissions until 17 July 2025[1].
Market studies allow the CMA to examine whether markets are functioning effectively and consumer needs are being met. Recent studies have covered housebuilding, rail signalling, road fuels, and the residential property market. Unlike enforcement investigations, market studies take a high-level view of structural issues that may be dampening competition. They often lead to policy recommendations or legislative reform.
This latest inquiry will examine whether the roads and rail infrastructure market is adversely affecting consumer interests and, if so, whether remedial action is warranted. The timing is significant: the civil engineering sector underpins the UK Government’s 10-Year Infrastructure Strategy, and a well-functioning market is essential to meet those ambitions. The CMA’s work offers an important opportunity for stakeholders to push for change.
The study is partly driven by findings from the National Infrastructure Commission (NIC), which has estimated that infrastructure investment – public and private – needs to rise by 30–50% over the next decade to meet demand. The CMA has highlighted several potential market constraints:
- a lack of long-term strategic planning;
- client and sponsorship challenges;
- inefficient consenting and compliance processes; and
- a constrained supply chain[2].
The NIC has further estimated that systemic improvements could yield 10–25% savings across infrastructure projects.
Market study aims
The CMA is examining how the market can operate more efficiently to drive cost-effective infrastructure delivery and economic growth. It has identified five characteristics of a well-functioning infrastructure market:
- Appropriate budgeting and design specifications, enabling options to be tested prior to procurement;
- Effective procurement design that balances quantitative and qualitative factors, encourages supplier participation, and promotes transparency around cost/quality trade-offs;
- Proportionate planning and regulatory procedures that avoid unnecessary cost and delay;
- Predictable, shorter timescales for delivery; and
- Projects that deliver best value in terms of unit cost, quality, and broader economic benefit.
To assess whether these conditions are being met, the study poses three central questions:
- How can public authorities access and evaluate the right information to scope projects and engage effectively with the market?
- Do current procurement, planning or regulatory practices create avoidable barriers to entry, expansion, investment, or innovation?
- What changes to market design or governance would best support delivery of UK growth and productivity?
Public procurement and competition
Early CMA stakeholder engagement suggests that authorities face difficulties in accessing information, evaluating procurement options, and formulating strategy. The study will consider whether improvements could be made in project scoping, including:
- greater clarity over long-term pipelines;
- access to technical expertise; and
- early market engagement (a practice also encouraged by the Procurement Act 2023).
It will also consider whether authorities may be unintentionally distorting the market by relying on procedures that discourage competition or emphasising narrow tender outcomes (e.g. lowest price at the expense of innovation and quality). The CMA will explore whether public procurement structures currently provide the right incentives to suppliers.
More broadly, the study will examine whether disproportionate bidding costs, design of evaluation criteria, or structural inefficiencies in the market are deterring supplier entry and innovation. The CMA’s goal is to identify the most significant obstacles to competition and performance.
We anticipate that the final report will shape the regulatory approach to road and rail procurement over the coming years.
What does it mean for the industry?
Ultimately, the study could result in suppliers facing greater scrutiny if the CMA determines public sector costs are too high. If inefficiencies are blamed on supplier practices, firms could face downward pressure on fees or increased compliance expectations. Engineering firms should get involved in the consultation and argue that they are good value for money.
Supplier engagement is therefore critical. Aside from the obvious importance of avoiding false or misleading submissions, parties should be aware of the CMA’s enforcement powers. For example, its 2023 housebuilding study uncovered indications of possible anti-competitive practices, triggering separate enforcement actions under Chapter I of the Competition Act 1998-investigations that are still ongoing.
This study also signals growing alignment between the CMA’s market studies and broader public sector reform agendas, including the Procurement Act 2023. As infrastructure investment rises and delivery pressures mount, the regulatory scrutiny of procurement strategy – particularly value-for-money, SME participation, and innovation incentives – is likely to intensify.
How to participate
To take part, written submissions should be made to the CMA in response to the questions set out in the scope document[3]. The deadline is 17 July 2025.
The CMA plans to issue an interim report in November 2025 and a final report by March/April 2026.
For further advice on tendering, procurement design, or competition compliance, please contact the authors or a member of our Competition and Procurement team
[1] CMA launches review of civil engineering for roads and railways – GOV.UK
[3] How to engage with our civil engineering market study – GOV.UK
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