The $7000 engine he will be getting will be much better than the one shown and its almost double the price. Its still got cast pistons, stock rods, stock crank, stock head, head gasket etc. Ill grant it does have the N1 block and pumps...but not much else. N1 crate engines are good in a street car at low boost levels but not the option to go if you want to make decent power.
$1500 is what i charge to R & R the engine...so use that as a guide...$2500 even at a rate of $100 an hour is 25hrs labour to do an R & R...they either have no idea what they are doing or no morals by ripping you off.