I am preparing a research paper on the advantages and disadvantages of
using a cost-plus, i.e., time & materials vs. a fixed fee contract
where it applies to residential construction. For example, what are
the benefits of using a sub-contractor on an hourly basis vs. a fixed
fee
basis, etc. I need to list arguments both in favor of or against such
an agreement. Also what is the benefits of a cost plus fixed fee
contract?

Interesting questions, bnailling-ga.  Please take a look at the Google
Answers pricing guidelines to help you increase the probability of
getting the answers you seek.
     
https://answers.google.com/answers/pricing.html

Cost plus method widely folllowed in India; is not quite effective,
excepting perhaps for a typical residential constructions. Even in
such cases, where BOM could be estimated quite acurately, one has to
depend on the engineers-architects designs. Most often, when a
designer and contractors are not same organisation, you have
production of over-safe and hence costiler design to account for the
decrease in the controls over the contractor. The best way to organise
is to first qualify turnkey contractors who can organise both design
and construction and then hire a professional quality auditor to audit
the quality of the construction. Offcourse this applies to typically a
minimum of 20000 sft construction in India for residential project. It
would vary depending on Country, Size of Project and the project
itself. (For example it is extremely ineffective going for cost plus
basis for a highway project.) Hope this anwers your question Better
tha $ 200 anser. Let me assure you of that. :)