There are various subcontractors in the construction process, including material suppliers, labor service providers, machines and tools providers, and so on. A construction contractor must work closely with its subcontractors in order to accomplish the construction smoothly. Thus, it is important to have subcontractors well-managed. This research proposed an improved process of subcontractor selection and management in the coordination between construction contractor and its subcontractors. The proposed process is based on the Supplier Agreement Management (SAM) process area in the Capability Maturity Model Integration (CMMI) and integrated with three management techniques. The first technique is the Quality Function Deployment (QFD), which is used to select subcontractors more objectively to lower the risk of failure. Next, the PDCA technique can be accommodated in the improvement of monitoring, self-checking, and correction process. The effectively corrected processes may be standardized and applied to other division or successive construction processes. The last technique is subcontractor's performance appraisal. An elaborate appraisal is the basis of appropriate reward and punishment, and obtaining the priority list for subcontractor selection. The proposed process is also adjusted and verified according to opinions collected from interviews with people who are experienced in construction industry. By applying the proposed supplier selection and management mechanism, a construction contractor can pick the better subcontractors more effectively and obtain the required products and services with better quality. In this way, the total productivity and construction quality of a construction contractor can be assured.
