Somewhat timely thread, I just had to pay someone to install a used engine in a car. Mine is a 2007 Chrysler Town and Country minivan that I bought in MN. to leave there for my use when I fly into town. It was also for my brother's and anyone else's use if needed.
It only had ~132k miles when I bought it last summer and ran like new. I left it with a friend, (term used very loosely), and told him that he could drive it occasionally if he needed to haul something, etc. Flew into town on July 4th and he picked me up at airport in it, I could hear a loud knocking sound as he pulled up.
"What's that noise?" 
"I dunno, must have just started."
To make a long story long, the van had about 5k additional miles on it and a loud rod knock. As most of us know, this condition is caused by severe oil starvation. It could easily happen on a cold start situation if someone revs the schit out of it immediately. Like if they had to move it on a plow day in Minneapolis in the winter.
I found a goos deal on a low miles used engine in a small town ~50 miles away at a junkyard. I asked whether they might possibly do installs, since I only brought a toothbrush with me for tools. They said no but they knew a guy in town who could do it. I got ahold of him, (Mexican guy with limited English), he said that he could do the swap for $500. I only mention his nationality because I thought that there might be a misunderstanding of what I was asking him to do...his English is a lot better than my Spanish.
He understood perfectly, that was his price. Thank god for small town America in this case. It took a little time for his schedule to open up but he did the job and the van is waiting for me at his shop. I'm a couple thousand miles away but he doesn't mind storing it. I went down to see him and his shop/work, he is more than competent for this job. Engine swaps are not rocket science but there is plenty of opportunity to break/damage stuff, think electrical connections, etc...
So yeah, the price you were quoted is very high. I would do it in steps, IOW, find a good used engine first and then find someone to install it. The install doesn't mean anything if the motor isn't great.