In 2025, Spencer Group adopted a proactive approach to champion the benefits of Early Contractor Involvement (ECI).
Mike Halliday, Managing Director of Spencer Rail, shared his insights in an article for Rail Magazine where he highlighted current procurement challenges and explained why he believes ECI is essential to unlocking future investment.
The article gained a lot of positive attention in the media, helping to amplify his viewpoint on the key industry topic and reinforce Mike’s position as a trusted figure in the industry, built on decades of hands-on experience. This culminated in Mike being asked to present his thoughts at a Rail Forum-hosted meeting with Mayoral Combined Authority representatives, which was also well received.
Here are some key highlights from the piece:
The rail industry is facing growing procurement challenges. Costs continue to rise while budgets tighten, creating a widening gap between client expectations, and what is realistically achievable.
For contractors, bidding has become increasingly expensive, often around £250,000 per bid, due to the need for detailed site visits, extensive design work, and thorough risk assessment to ensure proposals are accurate and deliverable.
At the same time, clients are battling higher labour and material costs, skills shortages, and restrictive legacy governance that slows progress and inflates costs.
These pressures are already causing projects to stall. In recent months, two major rail schemes were withdrawn after tender submissions far exceeded predicted budgets.
Such delays have significant consequences: costs escalate further, re-tendering becomes necessary, and the industry struggles to keep pace with passenger needs.
Contractors too, are becoming more hesitant to bid when the risk of projects being cancelled is high.
A practical solution is clear, bring contractors into the process earlier. Early Contractor Involvement (ECI) enables clients and contractors to work collaboratively from the outset, improving understanding of risks, constraints, and cost drivers.
Through two-stage contracts, contractors contribute their technical expertise from design through to construction, helping shape solutions that align with budget and operational requirements.
Early engagement also allows outdated governance processes to be challenged, creating more efficient ways of working and reducing overall costs.
Even when a project does not progress beyond the ECI stage, clients still gain clarity on risks, challenges, and realistic costs, enabling better decision-making before going to market.
By embracing ECI, the industry has a clear opportunity to enhance procurement, safeguard investment, and deliver better outcomes for passengers.
