Constructing a competitive picture: CMA launches new market study into the civil engineering sector

The UK Competition and Markets Authority ("CMA") has recently announced the launch of a new market study into the civil engineering sector, which will focus on the supply of roads and railways (excluding HS2). This fits neatly into the UK Government's growth agenda which the CMA is under pressure to work in step with and contribute towards. This new market study is highly relevant for all organisations active in the construction and infrastructure space, presenting both risks and opportunities for those involved in the design, planning, construction, enhancement, renewal, and maintenance of public highway and railway infrastructure.

In line with its recent commitments to work at greater pace, the CMA has said that it is committed to moving fast in this market study, with a final report expected around April 2026. During this time, the CMA will be on an intensive fact-finding mission to examine whether there are opportunities to improve interactions between market participants, so that both the public sector and the industry are incentivised to build more cost-effective infrastructure. In its Statement of Scope document, the CMA states that unlike many other studies that have focused on challenges with infrastructure delivery, it proposes to undertake a more forward-looking assessment of how this market could operate to realise its potential to support economic growth, with a view to making recommendations to government. It also indicates that, at the present time, it does not anticipate moving to an in-depth market investigation, in which it would be able to take remedial action to address any adverse effect on competition identified. Nevertheless, it is worth noting that recent comparable market studies have been the precursor to enforcement action. So, the civil engineering sector is very much on warning. Businesses active in this sector including by way of ownership or investments, should take this opportunity consider engaging with the CMA and or ensuring its ways of working comply with competition and procurement law.

Scope and Focus of the CMA Study

The CMA’s market study will examine the entire lifecycle of public road and rail infrastructure projects, from initial design and planning through to construction and ongoing maintenance. The study will not cover tram networks, light rail (including underground rail), routine maintenance, privately procured roads or upstream raw materials. It will instead focus on strategic, capital-intensive projects (excluding HS2). In this context the CMA will focus on identifying if there is any feature or combination of features in a market that prevents, restricts, or distorts competition. These might include the behaviour of a specific player or group of players, a particular market structure, or the relevant regulatory framework. The CMA will be especially interested in assessing how these market features may impact on decision-making and result in less choice and higher costs.

The CMA’s stated aims are to:

• Assess how public authorities access and use information to make procurement decisions and how they interact with the market to deliver projects;
• Identify whether procurement, planning, or regulatory processes create unnecessary barriers to entry, expansion, investment, or innovation; and
• Explore what changes could better incentivise and support civil engineering firms to deliver infrastructure that enhances UK productivity and growth.

The CMA will engage with a wide range of stakeholders, including contractors at all supply chain tiers, consultants, public authorities, regulators, planning bodies, and government sponsors. The analysis will focus on strategic and substantial infrastructure projects that involve capital investment which may lead them to concentrate on projects involving substantial earthworks and ground engineering to increase capacity or wholesale replacement and upgrades of existing parts of networks. In this context the CMA is seeking input on a broad range of issues, including:

1. The characteristics of a well-functioning market in this sector.
2. The appropriateness of the proposed scope and themes for the study.
3. Key differences in the supply of roads and railways across the four nations of the UK.
4. Case studies of UK infrastructure projects that illustrate good or poor outcomes.
5. The impact of public procurement and contracting practices on market outcomes, including engagement with suppliers, procurement procedures, tender design, risk allocation, and contract/pricing mechanisms.
6. The effect of industry structure, including company size, specialism, supply chain tiers, and financial arrangements.
7. Significant procurement, planning, or regulatory barriers and opportunities for further innovation.

Notwithstanding the breadth of these questions, the CMA is inviting written representations by 17 July 2025. An interim report is expected in November 2025, and the final report in Spring 2026.

Next steps

Even though the scope and timing of this market study is smaller than many of the CMA's other recent studies reflecting its commitment to work in a proportionate way, nevertheless, its potential impact both in the short and long term should not be underestimated. Next steps should be planned accordingly:

• While the CMA has indicated that a full market investigation (which could lead to significant interventions) is unlikely, the recommendations arising from this study could have substantial long-term financial and operational consequences for those active in the sector. Early engagement is therefore advisable.
• Information gathered during market studies can, and often does, lead to separate investigations into potential anticompetitive agreements. Recent concerns regarding alleged fraudulent practices in HS2 procurement may prompt the CMA to scrutinise the sector closely for anticompetitive conduct. More generally the CMA has made clear that competition law enforcement in public procurement is a top priority with one case already open and others anticipated. This is an important moment to review your organisation’s competition compliance and procurement practices.
• Even though initial indications are that this market study is unlikely to escalate to a more in-depth market investigation, the current process can involve substantial mandatory requests for information, creating a significant compliance burden. External legal support can help manage these obligations and mitigate associated risks.

This market study is a timely opportunity to engage with the CMA and help shape the future of the civil engineering sector. Mayer Brown's Antitrust & Competition group in London would be pleased to discuss the implications of the CMA’s study for your business, and how best to engage with the process.