A1.10 It is impossible to provide a definitive norm in cost terms for the effort to be devoted to small appraisals, because the circumstances may vary widely. Nevertheless, the following should act as a rough guide. The cost of the resources devoted to appraisal should normally be expected to be up to 2% of the value of the public grant or expenditure under consideration Where the cost significantly exceeds this level, say where it is 5% or more of the relevant value, the question of disproportionate effort may arise.
A1.11 In setting out this norm, it is emphasised that it represents a broad guideline rather than a rigid rule. There are likely to be many cases where appraisal will cost substantially less than 2% of the relevant expenditure, for instance, in simple decisions where the objectives are obvious, the options are very restricted and the costs, benefits and other factors are particularly transparent.
A1.12 More rarely, there may also be circumstances to justify committing larger costs to appraisal where, for example, the expenditure in view will have a disproportionate impact on the economy or where it will affect a politically or socially important issue.
A1.13 At the smallest end of the spectrum, involving expenditure of less than £10,000, appraisal should often require no more than one man-day of an experienced appraiser's time. However, different circumstances may justify more or less input.