But are not works required in the covenant of grace?
Yes. ‘This is a faithful saying, that they which believe in God, be careful to maintain good works.’ Titus 3:8. But the covenant of grace does not require works in the same manner as the covenant of works did. In the first covenant, works were required as the condition of life; in the second, they are required only as the signs of life. In the first covenant, works were required as grounds of salvation; in the new covenant, they are required as evidences of our love to God. In the first, they were required to the justification of our persons; in the new, to the manifestation of our grace.
– Thomas Watson, A Body of Divinity, pp. 155-156.