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In this video tutorial, Matthew explains how to create a home improvement contract entirely online using Legal Templates. He invites viewers to follow along and provides a link to the Legal Templates website. Once there, he guides users to select "business forms" and then search for "home improvement contract." Users have the option to preview the PDF or create the document directly. Matthew emphasizes that the transaction pertains to a sale of services in home improvement, identifying the service provider (who performs the work) and the customer (who purchases the service) as key elements to include in the contract.