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In this video, Matthew demonstrates how to create a plumbing contract using legal templates. To begin, viewers should click the provided link to access legaltemplates.net. Once on the site, navigate to "business forms" and use the search feature to find "plumbing contract." After selecting the contract, users will create a document by entering details such as the service transaction, their name and information as the service provider, and the customer's details. Additionally, users should describe the service provided and include the price per project, ensuring to specify the total cost if multiple projects are involved.