Boost Growth with CMA’s Road and Rail Procurement Overhaul

Road and rail procurement has become a focal point for the Competition and Markets Authority (CMA), which recently released its findings on market studies of road and rail infrastructure. The CMA advocates for strategic actions aimed at reducing costs while enhancing innovation and productivity in the sector. After an extensive 11-month evaluation involving government agencies, procurement entities, and businesses, the CMA's examination of public road and rail infrastructure addresses the historical inefficiencies in procurement. It reveals a significant opportunity for transforming these sectors. The CMA urges the government to adopt a more integrated and strategic approach to road and rail procurement, supported by a clear sector-wide plan. The insights gained from this study are applicable not just to road and rail but also extend to broader public infrastructure procurement scenarios. Sarah Cardell, Chief Executive of the CMA, stated: "Our findings in civil engineering highlight that a fragmented, short-term procurement strategy for road and rail is escalating costs, delaying delivery, and stifling innovation. This represents a pivotal moment for systemic change that demands centralized coordination and viewing road and rail procurement as crucial for broader economic growth. The CMA is committed to providing independent insights and practical solutions that promote economic advancement." The economic implications for civil engineering are stark, with approximately £19 billion of taxpayers’ money allocated for public road and railway infrastructure in 2023/24 (not including High Speed 2). Historical trends show a persistent underachievement in productivity and innovation within these markets. The CMA’s market study pinpoints key obstacles—such as funding unpredictability, short-term planning, convoluted regulations, and skill shortages—and outlines actionable steps to mitigate these issues. According to external assessments cited in the CMA's report, UK and devolved governments could save as much as £5 billion annually by addressing market deficiencies, all while reducing delivery timelines, boosting innovation, attracting investments, and fortifying the growth of UK companies in the competitive landscape. To foster significant reform, the CMA proposes the following targeted initiatives for public road and rail civil engineering: - **Strategic leadership for change:** The CMA encourages HM Treasury to take on strategic ownership by supervising system-wide reforms that shape the market, leveraging its overall administrative power across the public infrastructure sector. - **Establishing a sector plan:** The UK Government should work in consultation with the Scottish and Welsh Governments and the Northern Ireland Executive to develop and regularly update a strategic action plan for civil engineering in the road and rail sector. - **Reliable long-term funding pipelines:** Multi-year financing and clearer project outlooks are essential for instilling confidence in firms to invest in necessary skills and innovation. - **Long-term value in procurement:** Enhancements in project scoping, procurement strategies, and delivery methods are important for nurturing competition, lowering expenditures, boosting investments, and fostering innovation. - **Capacity building in the public sector:** Addressing skill shortages in procuring authorities through strengthened capabilities and cooperative procurement methods is crucial. Implementing these recommendations collectively would enhance competition in the sector, increasing productivity and opportunities for UK scaleup companies. This overhaul could expedite project timelines and ensure that public investments yield maximum economic benefit. When applied systematically, such reforms could transform public procurement into a key engine of growth. The CMA stands prepared to assist both the UK and devolved governments in executing these recommendations. Simultaneously, ongoing efforts regarding public procurement among priority sectors of the industrial strategy will persist, including measures against public sector bid manipulation. Sam Gould, Director of Policy and External Affairs at the Institution of Civil Engineers, commented: "Today’s CMA recommendations resonate with many principles we advocate. We particularly welcome the CMA's call for mandatory adherence to the Construction Playbook to facilitate quicker infrastructure implementations. It’s also encouraging to see the CMA echo the necessity for Treasury oversight in driving comprehensive change, supported by NISTA. While these recommendations are initially directed at rail and road, their successful implementation could provide valuable insights for other sectors. The government must act on these recommendations, empowering civil engineers and infrastructure professionals to advance the infrastructure that the UK requires." Ben Goodwin, Director of Policy and Public Affairs for the Civil Engineering Contractors Association, stated: "By urging UK and devolved governments to establish a strategic direction for infrastructure, the CMA outlines a pathway toward greater transparency in project pipelines, more effective procurement, and improved outcomes for businesses, communities, and the economy at large. We wholeheartedly support the CMA's conclusion that reforming the civil engineering sector can yield a significant multiplier effect—enhancing the value of public investment, boosting confidence within the supply chain, and making the UK a more appealing investment destination. We look forward to collaborating with our members, clients, and industry stakeholders to ensure that this report spurs necessary reforms, contributes to economic growth, job creation, and facilitates world-class infrastructure for the 21st century." ### Next Steps The CMA has formally communicated its recommendations to both the UK and devolved governments, reaching out to key Cabinet members and metro mayors. The UK Government has committed to responding to the CMA's proposals within 90 days. Further analysis and recommendations from the CMA regarding public procurement and market development are anticipated later this year. For additional information, visit the [Civil Engineering Market Study page](https://www.gov.uk/government/news/cma-recommends-overhaul-of-road-and-rail-procurement-to-cut-costs-and-drive-economic-growth-through-infrastructure-investment). For more insights on infrastructure and economic growth, check [Globe Migrant's resources](https://www.globemigrant.com/resources) and [read more about procurement strategies](https://www.globemigrant.com/procurement-strategies).

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