Which of the following is a key component of a subcontractor's bond?

A subcontractor's bond primarily serves to provide assurance of the subcontractor's performance on a project. This bond is a guarantee that the subcontractor will fulfill their duties as outlined in the contract, including completing the work on time, adhering to specifications, and making sure the work is conducted legally and safely. If the subcontractor fails to meet these obligations, the bond can be used to compensate the project owner or general contractor for any losses incurred due to such failure. This performance aspect is crucial because it protects the interests of the primary contractor and project owner, ensuring that all parties involved in the project can rely on the subcontractor's commitments.

While other elements such as protection against project delays or coverage for contract penalties are important issues to consider in construction, they are not the primary function of a subcontractor's bond. The bond's core role is to safeguard performance and ensure compliance with contractual agreements, which is why it is correctly identified as the key component in this context.