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In this video, Matthew explains how to create a plumbing contract using legal templates. He instructs viewers to click on the provided link to access legal templates and navigate to "business forms." By using the search bar, users can find the "Plumbing contract" and "plumbing invoice" templates. Matthew walks through the contract creation process, highlighting key sections: the transaction type (service), service provider information (your name and details), customer’s information, and a description of the services rendered along with the project pricing. He emphasizes accurately specifying costs when multiple projects are involved.