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A pool contract is a legal agreement between a property owner and a contractor for pool construction or maintenance, ensuring protection for both parties by outlining their rights and responsibilities. The video discusses the importance of having a swimming pool contract and highlights key components that should be included. It mentions average pool costs, which vary based on the project type, pool size, special features (e.g., waterfalls, mood lighting), materials, and location. For accurate estimates, it's recommended to consult a local contractor. Additionally, it notes that a DIY above-ground pool can cost around $800. For creating your own swimming pool contract, a link is provided at the video's end.