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In this tutorial, Matthew explains how to create a plumbing contract using legal templates. Viewers are directed to click a link to access legal templates.net, where they can find various business forms. By using the search function, they can locate the plumbing contract and invoice. After selecting the contract, users begin creating the document by defining it as a service transaction. They will fill out their name and information as the service provider and input their customer's details. Additionally, they'll describe the plumbing services provided and specify the project pricing, ensuring to clarify the payment structure for multiple projects if applicable.