Road and rail procurement reforms have been urged by the UK’s Competition and Markets Authority. The regulator said current planning and procurement arrangements are raising costs, slowing delivery and limiting innovation. This is reported by the railway transport news portal Railway Supply.

The recommendations follow an 11-month CMA market study. It examined civil engineering across the public road and rail sectors.

CMA findings on infrastructure delivery costs

The Competition and Markets Authority linked the inefficiencies to fragmented decision-making. Also, the regulator cited funding uncertainty and short-term procurement approaches. Around 19 billion GBP was spent on public road and railway infrastructure in 2023/24. This excluded HS2.

In addition, the CMA’s report cited external research. It suggested that governments across the UK could save up to 5 billion GBP a year. That would depend on improved procurement and delivery practices.

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.”

HM Treasury oversight and long-term planning

Among its recommendations, the CMA said HM Treasury should oversee wider sector changes. The recommendation reflected HM Treasury’s role in infrastructure funding and strategy.

The regulator also called for a long-term strategic plan for civil engineering in road and rail. It said the UK Government should work with the devolved administrations in Scotland, Wales and Northern Ireland. In addition, the plan should be supported by annual progress updates.

Other proposals cover clearer multi-year project pipelines. They also include procurement reforms aimed at competition and innovation. Separately, the CMA called for stronger skills and capacity within commissioning public bodies.

The CMA said greater certainty over future work could help firms invest. Those investments could cover staff, technology and long-term capacity.

Also, the report argued that lessons from road and rail could be applied more widely across public infrastructure procurement.

Civil engineering industry response

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.”

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed:

Don’t miss…HS2 project reset raises costs and shifts opening