What is the significance of the total contract price in a fixed-price contract?

In my understanding, it is used as a reference for change control – for example, if the calculated cost of a change falls outside a pre-set range (such as 12% of the total price), is it then possible to adjust the total price?

It is entirely correct that a fixed-price contract is based on a fixed unit price and the actual volume of work performed. The fixed total price serves as a means for the client to have some control over the overall cost of the project, while for the contractor it serves as a basis for making preliminary preparations before the project begins. For both parties, it also serves as a basis for determining the advance payment related to the project. A fixed-unit-price contract is more favorable to Party B, but it hinders Party A’s ability to control the total cost of the project. On the other hand, a fixed-price contract is advantageous for Party A; if there are significant changes to the project and no prior agreement has been made, Party B will have to bear greater construction risks. I learned from the books used for the architect exam, so there should be no mistakes. Hehe!

This total price is calculated based on the reviewed construction drawings

To control project costs, detailed design is key. Once the scope of work is clear, minimizing changes will help keep the total cost under control. Rather than focusing on ways to control costs, it’s better to devote effort to reviewing contracts and clarifying the scope of work and its details. Once these aspects are established, things become much easier to manage. In our case, no one paid attention to these matters in the early stages; now, however, everyone is involved – the finance department, auditors, and procurement staff are all checking the accounts, and many changes have been identified that weren’t handled properly. The contractor doesn’t suffer any losses, as they can still get paid for their work, while it’s the client who faces difficulties. Therefore, it’s important that the client’s representatives understand what needs to be done; once they understand that, they’ll also know the cost of the project. As for your question regarding the meaning of the total contract price in a fixed-price contract, the answer given on the third floor was very clear. However, the premise of cooperation is shared risk-taking, not something that benefits just one party. If the contractor bears too much risk, and ends up not making a profit, can the quality of the work still be guaranteed? Taking reasonable care of the interests of both parties is a prerequisite for cooperation, and it is beneficial for both sides