I think it's in Ephesians.
[link|http://www.biblegateway.com/passage/?book_id=56&chapter=2&version=31|Ephesians 2]:
1 As for you, you were dead in your transgressions and sins, 2 in which you used to live when you followed the ways of this world and of the ruler of the kingdom of the air, the spirit who is now at work in those who are disobedient. 3 All of us also lived among them at one time, gratifying the cravings of our sinful nature and following its desires and thoughts. Like the rest, we were by nature objects of wrath. 4 But because of his great love for us, God, who is rich in mercy, 5 made us alive with Christ even when we were dead in transgressions\ufffdit is by grace you have been saved. 6 And God raised us up with Christ and seated us with him in the heavenly realms in Christ Jesus, 7 in order that in the coming ages he might show the incomparable riches of his grace, expressed in his kindness to us in Christ Jesus. 8 For it is by grace you have been saved, through faith\ufffdand this not from yourselves, it is the gift of God\ufffd 9 not by works, so that no one can boast. 10 For we are God's workmanship, created in Christ Jesus to do good works, which God prepared in advance for us to do.
In that translation, the word "grace" only appears once in Luke and 3 times in John, (not at all in Matthew and Mark). I don't think "grace" was a concept that meant much to Jesus, myself. I think it's a concept that gained later importance as the disciples wandered around.
Since one of the things that Jesus did was [link|http://www.biblegateway.com/passage/?book_id=49&chapter=13&version=31|heal on the Sabbath], I think that works were important to him.
FWIW. YMMV. IANATheologian.
Cheers,
Scott.