For just R&R gaskets and studs/labor, that's about right. To 007's point though there's a lot more that goes into doing the job correctly that that price point isn't gonna cover.
Machining the heads/replacing them if they're cracked (one of the more critical points IMO) usually brings the price up to around 5k when you're having a shop do it. Then having all the "while you're in there" repairs/replacements/updates and such usually tacks on to the job.
Ask the shop what's actually done with that $3500, and what their warranty policy after the work is done.
A good estimate should include some wiggle room from the machine shop. THere;‘a a big difference between condemning the heads because they’re cracked or out of tolerance or not needing any work. With a fixed price, tells me its not going to the machine shop.
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