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In this video, Matthew explains how to create a plumbing contract using legal templates. He advises viewers to click on the provided link to access legaltemplates.net, where they can find various business forms. By using the search engine, viewers can locate the plumbing contract and plumbing invoice. He guides viewers to select the plumbing contract and create a document, detailing the service transaction. Viewers should input their personal information as the service provider and detail the customer's information. Matthew emphasizes the importance of accurately describing the services rendered and specifying the project’s price, especially when multiple projects are involved.