That's right, the jump in cost is mainly due to the machining of the block / labor of prepping the block and assembly. It doesn't just 'bolt-on' in a couple of hours...you've got clearancing to do, honing, boring, balancing, etc.
Do you have a reputable machine shop in your area? If so, I would engage them about doing the maching of the block and assembly. It will give you an idea of how much they are going to charge you and will give you another option to consider.
On the flip side, you don't hear about many Bennett or DSS built motors taking a dump on their owners....so you may want to consider having them do the entire short block.
E
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1991 5.0 LX Coupe - 40,750 miles
331 cu. in. / Tremec 3550 / BFG Drag Radials
12.22 @ 114.31 mph - w/1.89 60'
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