When it starts simply put in the address of the building
Click on Tools \ Ruler and select the unit of measurement and go!
Google Earth Pro
There is an option for Google Earth Pro which as of this article 08-29-13 has a trial version. For contractors who try the free version and like it would be well advised to download the trial version which as of 08-29-13 is $399.00.
Let's run a quick Cost-Benefit-Analysis on the investment:
Using a simple Decision Modeling Calculation with basic Linear Programming we can determine if it makes financial sense to recommend Google Earth Pro to our contractor client.
For example let's examine a contractor who is paying an estimator or field employee responsible for gather information $25.00 an hour plus overhead. The calculations for fully burdened labor rate would look something like the diagram below:
In this example the estimated cost per hour including payroll taxes and benefits is $37.72 so the next question we ask in a Cost Benefit Analysis is how long will it take to pay back the investment? The calculations for that would look something like the diagram below:
As shown in this example if the investment in Google Earth Pro saved the contractor 10.6 hours of labor costs in the course of four years it would meet most Construction Company's Investment Return on Investment Hurdle Rate.
We suggest our outsourced contractors bookkeeping clients to set their Return on Investment Hurdle Rate at roughly 25%. Which means if they invest $100 today we would like to see the money back in the company bank account in four years? $100 X 25% a year = $25 a year X 4 Years = $100.
For Our Financial Analyst, financial manager and economist and statistician friends reading this I know what you are thinking:
What about the Present Value?
What about discount rates?
What about the opportunity costs?
What about borrowing costs?
How will it affect the current ratio?
How will it affect the debt to equity ratio?
What about the additional cost savings of not driving a company vehicle?
And at least a dozen more calculations
Like some of you I also have more degrees than a thermometer and there comes a point where we have to focus on the big picture.
We present the calculations and underlying assumptions along with the risk analysis and ask our contractor client if after using the free version of Google Earth and taking advantage of the No Charge trial version of Google Earth Pro the question they need to answer is will it save them enough in fully burdened labor costs to make it a worthwhile investment?
One of the benefits for a contractor to hire us for their outsourced construction accounting services is that we are a trusted advisor and a key player on their Board of Advisors who help them operate and grow their construction company and put more money in the bank. If we do our job well we help contractors earn and save more than what they pay us. For more on this click on MC" target="_blank">MR>MC
Disclaimer: We present this information as another way to support the men and women of the construction industry and want everyone to know we are not paid anything from Google Earth or Google Earth Pro. We just want to do our part to help contractors achieve their definition of success one contractor at a time.
About The Author:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional and Construction Accountant and Intuit ProAdvisor. This combination of experience and skillsets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and accountants to the benefit of all of the construction contractors he serves across the USA. http://www.fasteasyaccounting.com/randal-dehart/ and learn more.