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I have 42 tiles of LiDAR .XYZI point data containing approximately 800,000 points each and I need to create 1 foot interval contours out of the data. I have access to ArcMap 10.3 and the 3D Analyst and Spatial Analyst toolbar's. The final goal of the project would be to display the 1' contours associated with flow lines.

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Because you have 42 tiles of 800,000 point you have more data than a TIN can hold-you will need to build and populate a Terrain. Using the tools available in the 3D Analyst toolbox-construct an ESRI Terrain dataset , populate the Terrain with your point data, then use the contour tool to construct 1 ft contours. Here is a link to working with Terrains in 10.3: http://desktop.arcgis.com/en/arcmap/10.3/manage-data/terrains/building-a-terrain-dataset-using-the-terrain-wizard.htm

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