In 2014 the number of contractors in Indonesia reached about 142,000 companies with total
employment of about 7.28 million people and the value of the construction sector reached Rp
826.62 trillion. The number of small and medium qualified contractors are more than 99% with
total employment of about 92.35 %. However, the market share of small and medium qualified
contractors only reach about 15% of the market share of national construction. So it is not
balanced when compared with the big number of qualified contractors only about 1% of
companies and 7.65 % of employments, but its market share will reach 85 % of the market
share of national construction. Therefore it needs attention and improvement efforts by all of
stakeholders. This research aims to analyze the relationship parameters of project management
competencies, resources and capabilities, strategic decisions, performance and sustainability of
the company to increase the competitiveness of small and medium qualified contractors in
Indonesia. The data collected through questionnaires Likert scale (1-5) to 134 respondents at
13 provinces in Indonesia by the methods of stratified sampling, purposive sampling and
proportional sampling. The data, further, are analyzed using SPSS and SEM-Smart PLS
software. The analyzing data research are validated using direct observation to some small and
medium qualified constructors in Surabaya. The result from this research sums up that the
parameter analyzed parallel in gives positive and significant influence to the improvement of
competitiveness of small and medium qualified contractor in Indonesia, those are in 1) project
management competency influences the resources and capabilities, and influences the strategic
decision making, 2) the resources and capabilities and strategic decision making influence the
performance, 3) the performance directly influences the sustainability and indirectly influences
but not significant on the competitiveness 4) the sustainability influences the competitiveness
Keywords : resources, performance, strategy, sustainability, competitiveness, small-medium
contractors
