CMA civil engineering sector market study response from the Railway Industry Association
17 July 2025 1.
INTRODUCTION
1.1.
This paper provides the Railway Industry Association’s (RIA) response to the questions raised in the Competition and Markets Authority’s (CMA) call for evidence for its market study into the civil engineering sector and the preparation and delivery of rail and road projects. The response draws on a roundtable discussion between RIA members and the CMA as well as RIA’s previous work.
2.
ABOUT RIA
2.1.
RIA champions a dynamic UK rail supply sector. We help to grow a sustainable, and high-performing railway as well as promoting UK rail expertise and products to international markets. RIA has over 450 companies in membership, which is active across the whole of railway supply, covering a diverse range of products and services and including both multi-national companies and SMEs (over 60% by number).
3.
CHARACTERISTICS OF A WELL-FUNCTIONING MARKET
3.1.
Within the statement of scope, the CMA outline that a well-functioning civil engineering market would be expected to have the following characteristics: • • • • •
3.2.
Appropriate project budgeting and design specification, including input from potential suppliers, to test the viability of different options in advance of launching a procurement. Effective procurement design, which balances quantitative and qualitative criteria, and incentivises suppliers to participate in tenders, submit accurate cost estimates and articulate any quality / cost trade-offs. Proportionate planning and regulatory processes that minimise cost, complexity and unwarranted delays for both the procuring body and participating suppliers. Predictable and shorter timescales for the delivery of infrastructure projects, underpinned by a productive supply chain. Ultimately best value projects that deliver an efficient unit cost of infrastructure, meet high quality standards and underpin growth.
RIA agrees with these characteristics. The civil engineering sector would find it difficult to operate efficiently if these characteristics were not recognised and fulfilled. In addition: •
•
An appropriately skilled workforce is a crucial characteristic of a well-functioning civil engineering market. This is closely related to the productive supply chain noted in the penultimate bullet point above. The National Skills Academy for Rail (NSAR)holds important evidence on the health of the rail workforce. Aligning with the final point in 3.1, an efficient market would also be outcomefocused, as opposed to focusing solely on costs and budgets. Cost-only focused procurement can prevent innovation in the sector. For example, RIA members have expressed concerns with tenders that are overly prescriptive – often specifying in detail what a rail client might want built, rather than the problem which needs solving or the outcome which is desired.
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