The Competition and Markets Authority (CMA) has launched a new market study into the design, planning and delivery of road and railway infrastructure across the country.
It is the first market study the CMA has launched since the publication of the government’s strategic steer for the CMA, and will run in line with its ‘4Ps’ commitment to pace, predictability, proportionality and enhanced process “to deliver more effective engagement with key stakeholders”, it said.
The market study will examine whether there are opportunities to improve how the public sector and industry work together, for example through improvements to public procurement, so more cost-effective infrastructure can be built in support of the government’s growth mission.
The market study is likely to result in recommendations to government and does not give the CMA the power directly to intervene in the market.
The civil engineering sector as a whole added £23 billion to the UK economy in 2023 with the hope the study could boost productivity, streamline procurement and reduce barriers to entry across the sector.
The National Infrastructure Commission estimated that public and private sector investment will need to increase by 30% – 50% over the next decade to deliver more complex infrastructure.
The review will focus on:
- Ensuring public authorities access and examine the right information to make well-reasoned decisions when procuring roads and railways. It will also consider if they can effectively work with the market to deliver projects on time, to a high quality and within anticipated budgets.
- Assessing if any procurement, planning or other regulatory processes create significant unnecessary barriers which limit companies’ ability and incentive to enter, expand, invest and innovate in this market.
- Examining any changes needed to the way this ecosystem operates to best incentivise and support civil engineering firms to deliver public roads and railways in a way that best delivers UK productivity and growth.
The market study will focus on the full life cycle of roads and railways, including their enhancement and maintenance. It will not consider privately procured roads or smaller maintenance activities like potholes. It also excludes HS2 given it has undergone multiple reviews.
The CMA also wants to hear from businesses such as those designing infrastructure projects or working across the supply chain. It will conduct the study in line with the CMA’s ‘4Ps’ commitments to pace, predictability, proportionality and process (in particular stakeholder engagement). This includes:
- Setting out its intention to finish this work in 10 months, well inside the 12-month statutory timetable.
- Publishing a roadmap so it’s clear for businesses about what it intends to do at each stage of the study and how they can engage with the CMA.
- Explain what issues it intends to focus on and what it expects the likely outcomes of this work to be. This includes updating participants as these develop throughout the study.
- Running a range of engagement channels to hear from a full range of businesses through the civil engineering supply chain as well as public sector clients.
Sarah Cardell, Chief Executive at the Competition and Markets Authority, said:
“There’s no question that reliable, high-quality infrastructure is critical in accelerating economic growth. To achieve this, public authorities and the civil engineering sector must be able to work together to deliver projects on time, within budget and to high standards.
“This review is a crucial step in identifying barriers holding back the sector – supporting the drive to get Britain building and ensuring every penny spent is delivering value for taxpayers.””
Chief Secretary to the Treasury, Darren Jones, said:
“Upgrading the country’s economic infrastructure is essential for unlocking growth across the country and delivering our Plan for Change.
“This study will build on our 10-year infrastructure strategy and help us deliver growth with its evidence-based, independent findings.”
Alasdair Reisner, Chief Executive at the Civil Engineering Contractors Association, said:
“Civil engineering plays a vital role in all our lives, from the largest megaprojects to the smallest local schemes. But in all cases, we must strive to work with our clients to deliver outstanding and affordable results.
“We welcome the CMA’s focus on how more productive delivery of civil engineering can secure better outcomes and help the government meet its ambitions for growth. We look forward to working to support this study.”
Image from Shutterstock
