Wow I had no idea it would be that expensive... :/

nah, prices around that sound about right. figure 1500 in labour to remove and refit engine, gearbox etc, fluids (coolant, gear oil, engine oil, and bleed coolant ) $200 machine flywheel $50, gasket kit $300, and your at 2050 before you engine strip clean inspect and rebuild motor.

Yep, Tony Flood and Tristan are very reputable.  You could save a fair bit taking motor in/out your self. 
 
Cheers