Squeezing a "legitimate" 400HP out of a little standard bore 289 means someones putting in some serious mods. I did see the word "heads" mentioned in your inquiry and they can get a cash register ringing real quick too. I think your going to have to spin that thing quick and high to get 400HP which means cam, porting, heads, headers, flo and decent aspiration. If you take out the number "400" and put in a reasonable 250/300HP, I'll bet the price could drop right quick. Labor sounds a bit high to me for a rebuild by about a grand but you're dealing with a CA custom hot rod shop and he's gonna make a living CA style. Components like a steel crank; high end rods, good quality slugs, carburation, etc. preferred for a "legitimate" 400HP SB motor that will "stay together" are going to run the price up. If you think he's expensive then your going to recoil in shock and horror if you call George Gessford or some of the other builders for a price. BTW: Gessford does
top quality work but my first quote from him on a BB was over $27,000 and I was expecting around 18K. Keith Kraft built mine, and it's a screamer but it still cost me around $16k (with "MY" block ) when all was said and done. I chose to pay EXTRA for H-Performance parts (not labor) to insure the the motor stayed together under duress. I like duress. Craft did a good job for me but there are no free rides. Here's some numbers to give you a base line:
(1968 427FE standard bore block - MINE):
Block prep (bake, tumble, magnaflux and chase all holes) - $120.
Bore & Hone with torque plates - $250.
Line Hone Block - $120.
Square Deck Block - $120.
Custom
oil galley mods (grind/drilling) - $60.
Passage cleaning, plugs, paint - $80.
Cam bearing install - $40.
Balancing - $175. + $75. per piece mallory (used 4) = $475.
Intake Port Matching - 180.
Short block assembly with spec sheet and cam shaft degreed - $400.
Complete engine assembly for Dyno Testing - $1000.
Thats $2,845. in "Machine Shoppy" stuff & NO parts.
Serious money in parts:
Stage ll Aluminum ported Heads - $2500.
T&D Rockers - $925.
Lunnati Rods - $900
Steel Crank, pins, slugs, rings - $1900.
Cust Solid Roller Cam / S-Lifters/Pushrods -$690.
Blue Thunder 2x4 plus twin 750 holleys / linkage - $1600
Water pump - 160
HV
Oil pump - 60
Billet timing Set - 200
SFI Certified Damper - 300
MSD stuff - 329
Canton T-Race Pan - 289
Valve Covers - 160
Thats $10,000+. in PARTS not including Prep work and I'm not finshed. Dip Stick, Tube, Plugs, wires/ gaskets, Filters, Lines, etc. that you can add to this list. I paid $1500 for my block 2 yrs ago. There was shipping, dyno runs, tuning, jetting, tweeking tear downs, man time and so on. HP cost money.
My opinions: A). Drop the HP and you drop the price by going to stock 289parts and putz around town with it. B). Buy a higher HP crate (with respectable warrantee) for a "drop in" and sell your block to cut corners. C). Get a KC high winding Windsor and go like hell. I like my BB but those Windsors are quick, dependable and have torque the 289 can't give you at a reasonable price. Even a tweeked 390 is not expensive and the blocks are available. I know guys with crates and "no issues" and guys with crate motors and lots of issues. Having said all that: 7 to 8 grand for a fresh 400HP SB "custom built motor" is not unrealistic in my opinion (regardless who you get it from). However; I would demand a build sheet and HP confirmation. Remember this: if it's built locally you can go to him and stick it up his bottom if there are any problems. There is a lot to be said for that. I've been to that movie too. Anyway; good luck with it. Gotta go.
Bernie