The discrepancy between competence and real work in engineering graduates can be resolved with cooperation by the construction industry. Therefore, it is necessary to determine the appropriate and required architectural engineering competencies with the current demands and conditions of the construction industry. So, this study aims to analyze the determinants of competence and test the competency development model for architectural engineering graduates according to the needs of the construction industry. The research sample method is non-probability sampling using purposive sampling. The research sample consisted of 240 practitioners and trainers from 40 construction industry companies. The PLS-SEM technique was used to test the measurement and structural models (3 dimensions, 8 elements, 47 constructs/indicators, and 9 hypotheses). The competence of architecture graduates is determined by the dominant factor, namely Utilities and Building Construction (UBC1 & UBC2, [lambda] = 89.90%), and Building Estimation and Costing (BEC7, [lambda] = 73.30%) is the lowest factor. The ability of the structural model to explain architectural competency measurements is 36.20% in the moderate category. The predictive relevance value (Q2) explains 47.5% to 56.0% of the phenomena predicted in the field and explains the level of strength of the observed value in the structural model. Furthermore, 9 hypotheses from 8 dimensions have a positive and significant effect. The results of this study can be a recommendation for schools in the competency implementation model, and efforts to improve graduates' abilities and skills so that they can be absorbed by the construction industry and reduce unemployment.