To calculate the total amount charged to the contractor, we need to find the cost of the grass and then add the delivery charge.
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Calculate the cost of 8 pallets of grass: \[ \text{Cost of grass} = 8 \times 137.59 = 1,100.72 \]
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Add the delivery charge: \[ \text{Total amount charged} = \text{Cost of grass} + \text{Delivery charge} = 1,100.72 + 102 = 1,202.72 \]
So, the total amount charged to the contractor is $1,202.72.
The correct response is D. $1,202.72.