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In this video tutorial, Matthew demonstrates how to create a plumbing contract using legal templates. He instructs viewers to click a provided link to access legaltemplates.net, where they can find numerous business forms. By utilizing the search feature, he locates the plumbing contract template and selects it to create a document. Matthew explains that the transaction type is a service and advises filling in the service provider's name and information. He then emphasizes the importance of detailing the customer's name, describing the service provided, and specifying the price per project clearly, especially if multiple projects are involved.