Shaping the future of civil engineering

What the CMA’s market study means for roads, rail and regulation

The CMA’s market study is a once-in-a-decade opportunity for civil engineering firms to influence industry reform and unlock long-term value. Find out the study’s key areas of focus and how to get involved.

2nd July 2025

On 19 June 2025, the Competition and Markets Authority (CMA) launched a landmark market study into road and railway infrastructure.

This study is aimed at tackling long-standing issues such as cost overruns, project delays, and delivery inefficiencies. But it’s more than just a regulatory development, it’s a strategic opening for civil engineering businesses to help reshape how the sector functions and is governed.

As the UK government intensifies its 10-year infrastructure strategy, this study signals a move toward smarter procurement, increased transparency, and greater collaboration between public and private sectors.

Why this study matters

“The CMA’s study is likely to call for significant improvements in productivity, procurement, and market access which will particularly benefit innovative and specialist firms."

The civil engineering sector contributed £23 billion to the UK economy in 2023. Yet, according to the National Infrastructure Commission (now merged into the National Infrastructure Service Transformation Authority since April 2025), inefficiencies across infrastructure projects continue to result in billions of pounds in lost value.

Road and rail projects make up around 70-75% of public infrastructure spending, meaning improvements here could deliver massive economic impact -not just for the sector, but for the country’s long-term growth and connectivity.

Key areas of focus

The CMA’s study will explore three core themes:

Public Sector decision-making & procurement

Are public authorities using the right data to make informed, value-driven procurement decisions?
Or are current processes unintentionally encouraging delays and cost escalation?

Barriers to entry and innovation

Are newer, smaller, or specialist firms being locked out by legacy systems, red tape, or cost-prohibitive tendering requirements?
Could smarter frameworks unlock innovation and competition?

Market design & system-wide efficiency

Does the current market structure support long-term collaboration between clients and contractors?
Are there better ways to align commercial incentives with national goals?

What could happen next?

The CMA has committed to completing its study by Spring 2026, with a faster than usual timeline.

Possible outcomes include:

Procurement reform recommendations
Guidance updates for local authorities
Government policy changes
(If needed) Formal market investigations or enforcement proceedings

What this means for civil engineering firms

This study may well lead to fundamental reform. And those who engage now will be best placed to help shape and benefit from what comes next.

The CMA will be contacting key stakeholders in the weeks ahead and seeking answers to wide-ranging questions which affect your business and the industry. In certain circumstances the CMA does have the legal powers to compel businesses covered by a market study to respond.

However, most businesses should and do fully cooperate with the process as this is the best way to ensure optimum outcomes.

Key implications may include:

Procurement reform: Shift toward more transparent, outcome-based models, particularly beneficial for SMEs and innovators.
Reduced bureaucratic friction: If red tape is identified, firms could see streamlined processes, faster approvals, and fewer reporting burdens.
Stronger industry collaboration: A move away from transactional contracting toward longer-term, partnership-based models.
More predictable pipelines: Early-stage planning, and better supply chain engagement could drive improved delivery and resource allocation.

How to get involved

The CMA is actively inviting input from across the sector, including:

Tier 1 contractors
Design consultancies
Material suppliers
Specialist service providers

Opportunities to participate include:

Evidence submissions
Stakeholder surveys
Workshops and engagement sessions
Targeted interviews

Firms that engage early and constructively will be best positioned to shape reform outcomes that work in their favour.

Looking ahead: strategic impact

If successful, this market study could pave the way for:

A more dynamic and competitive engineering market
Greater innovation and inclusivity
Infrastructure delivery that’s better aligned with the UK’s economic and regional ambitions

For those in the sector, this is more than just compliance. It’s a strategic opportunity to co-create the future.

How can we help?

Market studies allow the CMA to examine what’s really holding a market back: from regulatory frameworks to procurement behaviour.

But contributing effectively takes more than technical knowledge. It requires strategic legal insight.

Firms will need legal experts who understand how the CMA works and how to respond effectively.

We help firms:

Understand the CMA’s goals and how to align with them
Navigate legal powers and procedures, including potential outcomes
Respond persuasively to CMA information requests or questionnaires
Formulate proposals that support beneficial reform
Comply with any remedies or recommendations that follow
Adapt business models in light of regulatory change

Whether you're a Tier 1 contractor, SME, supplier, or public sector delivery partner - if you're active in the civil engineering space, this is your chance to shape the future.