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In this video, Matthew explains how to create a plumbing contract using a legal template. He instructs viewers to click on a link to access legaltemplates.net and navigate to "business forms." Using the search function, viewers can find and select the plumbing contract and invoice templates. After choosing the contract, he outlines the necessary steps: define the transaction as a service, input the plumbing service provider's name and information, and specify the customer's details. Additionally, he mentions the importance of detailing the services provided, including pricing per project, to ensure clarity, especially for multiple projects.