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In this video tutorial, Matthew explains how to create a plumbing contract using legal templates. He instructs viewers to click on a provided link to access legaltemplates.net. Once on the site, users should navigate to "Business Forms" and search for "plumbing" to find the plumbing contract template. After selecting the contract, they will fill in details about the transaction, including the service type, plumber's name and information, and the customer's details. The description of the service should outline the work done and include the price per project, ensuring to specify the exact amount for multiple projects.