The options appraisal process involves the following steps:
• Preparing for the options appraisal;
• Setting the objectives of the appraisal;
• Defining the evaluation criteria;
• Deciding the weighting to be applied to each criterion;
• Developing a methodology for scoring options and calculating cost;
• Selecting options;
• Evaluating the options against the criteria; and
• Drawing conclusions from the scores awarded.
The remainder of the guidance is structured to reflect these steps. Each Section examines a single step in detail and provides guidance on the specific issues that arise.