We don't have a contract, I invoice each repair I do for them and charge by the hour. I have a flat rate I have given them on service repairs because they are all the same. I invoice them weekly. And yes, if they don't pay I have no choice but to cease all work.
My main question is, why would they be using bond as an excuse to hold up payment? Why would the surety pay subcontractors? Does that sound like a legitimate excuse?
You can still have a contract signed ahead of time even when working like this. The contract would specify the hourly rate, the markup on materials and the payment terms. The contract would specify that you are to be paid weekly and what will happen if you're not. It's hard for them to dispute this when you have a signed contract from them agreeing to these terms.
There's no reason not to have a signed contract even if you're working on a T&M basis.
Yup you always need a signed contract, and we do a credit check on the GC's to be sure they have the means to pay, most of the subs in this area work Day Rates for the GC's paid at end of day or no show the next day until the previous day is paid in full.
I see a real problem, when you say you have no or low overhead, then something is wrong with your operating practices, are you fully insured general libality, workers comp, and you must have a magic carpet, because our trucks equipped with tools and material are a killer expenese.
Bid low and you will always get your foot blown off.
