The Competition and Markets Authority (CMA) has raised concerns over inefficiencies in the UK’s civil engineering market, with Murphy, Amey, and Balfour Beatty among the key contributors to the ongoing study into public road and railway projects, which account for 70-75 per cent of government infrastructure spending.
In its interim report, the watchdog highlighted the £19 billion annual public sector investment in road and rail maintenance, revealing more than half of these projects face delays, with an average cost overrun of 27 per cent in rail and 29 per cent in road projects.
For 2023/24, the CMA estimates £10.3 billion was spent on public roads and £8.7 billion on railways, with delay and cost analysis from Boston Consulting Group (BCG).
Described as a “negative cycle”, the CMA identified several key issues including uncertain funding, procurement challenges, and regulatory barriers, which are contributing to low investment and stunted productivity.
The report, building on work from the National Infrastructure and Service Transformation Authority, includes input from industry players like Balfour Beatty, M Group, Arup, AtkinsRéalis, Amey, and Murphy Group.
Proposals focus on creating a more predictable funding environment, improving procurement capabilities, and encouraging innovation across the supply chain.
It also stresses the need for better risk management, increased competition, and more effective procurement processes.
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Sarah Cardell, chief executive of the CMA, said: “Building on the work of other expert bodies in this field, we’re focused on identifying concrete ways to deliver better outcomes in these critical infrastructure markets.
“Early areas of focus include enhanced competition and innovation in supply chains, through greater opportunities for scaling and removal of regulatory barriers – and more effective public procurement processes.
“At the same time, we want to enable legitimate collaboration – across government, public authorities and industry – to support investment and growth.
“We’ll continue our work to develop and refine our initial proposals into a mutually reinforcing package of measures, engaging further with the sector as we do so.”
A full report is expected in spring 2026.
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