117: Innovative Thinking with Marvin Lahoud, Partner TOCCI, CEO C Street

In this engaging episode of Design Development, host Rens Hayes delves into the multifaceted world of commercial construction with Marvin LaHoud. Marvin's insights offer a refreshing view on the challenges faced by general contractors, notably the high-risk, low-margin nature of the business. The conversation revolves around finding differentiation in a commoditized market by lowering costs and risks, aligning with principles that focus on 'risk engineering' and 'cost engineering.'

Marvin also shares his experiences with Tocci, a progressive construction and consultancy firm. Key topics include the exploration of Integrated Project Delivery (IPD), modular construction, and the application of Virtual Design and Construction (VDC). Marvin emphasizes innovations like Project Rescue, which seek to drive down costs and enhance efficiency by leveraging data and transparent communication. His entrepreneurial spirit shines through discussions on his roles with Marvin Capital and his new venture, C Street, a platform that aims to revolutionize price discovery and optimization in construction.

Key Takeaways:

• High-Risk, Low-Margin Industry: General contractors operate in a challenging environment requiring precise execution and risk management to secure profitability.
• Differentiation in Commoditized Markets: Success hinges on lowering costs and risks, adopting roles that emphasize engineering over management.
• The Power of VDC: Virtual Design and Construction can significantly reduce the inherent risks and costs in construction projects when applied effectively.
• Entrepreneurial Initiatives: Marvin's ventures, such as C Street, indicate a movement towards using technology to solve longstanding industry inefficiencies.
• Lifelong Learning and Adaptability: Marvin underscores the importance of continuous education and applying first principles thinking in achieving business success.

Notable Quotes:

• "It's a lot of risk management and it's finding ways to make that profit, to get any net profit at the end of the day." - Marvin LaHoud
• "You accept the fact that you're a commodity, but differentiate yourself on your ability to drive cost down, risk down." - Marvin LaHoud
• "C Street is just price discovery and optimization because we figured that the biggest enemy to construction costs is the opacity of the market." - Marvin LaHoud

Resources:

• Marvin LaHood's LinkedIn: https://www.linkedin.com/in/marvin-lahoud-3a91384b
• Tocci Website: https://www.tocci.com/
• C Street: https://cstreet-cre.squarespace.com/
• Books Mentioned: "Sapiens" and "A Short History of Nearly Everything" for broader perspectives on history and science.

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