OL_MeasuringStick.zip

This download looks like an addon. You need to extract the downloaded zip and put the addon folder in your Garry's Mod addons folder. You should end up with a directory structure similar to below:

• steamapps
  • common
    • garrysmod
      • garrysmod
        • addons
          • OL_MeasuringStick <-- Addon folder!
            • e.g.
            • lua
            • maps
            • materials
            • models
            • etc

• OL_MeasuringStick/
  • 1.jpg
  • 2.jpg
  • info.txt
  • lua/
    • entities
    • weapons/
      • gmod_tool/
        • stools/
          • ol_measuringstick.lua

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