The reason for the % diameter restriction in specs is for head reserve capacity. As stated above, original C.O.S. miscalculations or future changes can be dealt with much easier in horizontal pumps by just getting full trim impellers. And as also alluded to above, API requires I believe??
Between 5-10% is typical for specs.; more than that and you've selected the wrong pump. You may also find concurrent requirements that the motor and baseplate be ORIGINALLY sized to accomodate the max diameter impeller; no matter what size is required by original C.O.S. If conditions change or were miscalced originally, it can become VERY expensive to upsize existing baseplate, foundation, motor, starters, etc......
Just get a copy of Shell, Exxon, Conoco, etc. pump specs and use as a draft if you are trying to write your own specs. These specs are all based upon decades of experience, and though they have become a bit overbearing these days, some of the basic intentions remian; one of them being the head reserve clause. JUST DO IT.
Verticals, instead of having a head reserve value for each stage, should make sure there is room in the original hole/can to add a couple stages for future use. Multistage verticals should be designed with all full trim impellers; just trimming the intial stage to fine tune the head. Trimming one stage preferable to trimming all of them.