UPDATE 2: ...He called me back and said an engine costs them $15xx.00 and normally they would sell it to me for $18xx.00, plus 7 hours labor and total it would cost me usually with taxes around $2400. They are offering to do it form me for $1000.
Do these costs sound reasonable? 7 Hours seems short compared to what the other shops told me.
Anyways thanks again for the help guys!
Very interesting.
Sounds like they think you have a case and that they dropped the ball. Them offering that big of a discount is pretty much an admission of guilt, IMHO. And the statement that they noted a significant issue, but failed to tell you... if that is true then they screwed up. If it isn't true and they are trying to cover themselves, then that is not smart, as they just admitted that they found a significant issue. They would have been better off to say they didn't find any issue, if they were just worried about CYA. I don't think you would have any sort of case in court if they said they did a thorough check and found no issues.
I don't know if they have any legal liability, even if they did neglect to tell you that they noted that the engine had issues... but you said you already got legal advice.
At the end of the day, I wonder how relevant their offer is anyway.
You have an offer to get you back on the water for $1,000 from a shop that I'm guessing you don't trust, and they probably don't really care for you either. Just based on this, I'm not sure i'd want them doing the job if I were in your position.
Another option, maybe... they say the engine cost them $1,500. For what? Are they going to rebuild it, send it out to be rebuilt, replace with a used (non-rebuilt) engine, or something else? If they send the engine to SES for rebuild, the standard options would be $840, and about the same from SBT. Even with shipping added that wouldn't be more than $1k. If the shop is willing to install an engine that cost them $1,500 for $1k, would they install an engine that cost them $1k from SES or SBT engine for $500?
I'm wondering if they are inflating their cost of the engine so you think you are getting a deal, then actually charging you their cost for the engine ($1k)... basically giving you free removal and installation.
Also, I don't know what additional cost the hole in the case would incur in a rebuild, so maybe that is why their quoting $1,500 for the engine.
Anyhow, none of that matters if you don't trust them and don't want them doing the work.
Edit: Oh, you also asked about the time required. I've only removed and installed a 787 from a '96 challenger twice. I've removed one other partially disassembled SD engine from a GTX, but have no other SD experience. On the last one it took me about 2 hours to remove and crate the engine for shipment. Add an hour for pressure washing the engine bay to get all of the oil out. I REALLY took my time installing it, reading and re-reading the shop manual for every step, and it took me about 6 hours to re-install it. I think that I could have done it from memory in 3 hours, but went by the book double and triple checking everything. So I would expect that an experienced shop with the right tools should be able to do an engine swap in 5-6 hours. That is consistent with what I've heard the experts like Dr. Honda say.