The money will fund an 18-month project by the Transport Research Laboratory (TRL) to examine engineering techniques that could see utilities use temporary road-surfacing methods and fast-setting replacement road surfaces.
This would allow utility companies to carry out more work at quieter times and to re-open roads during peak traffic periods to reduce delays and disruption.
Funding will be provided equally by the Department for Transport (DfT) and Transport for London (TfL).
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