Me wants to know also, why new bolts? You could replace broken ones from a wrecker easily enough, but new? Why?
Yeah, $1200 sounds steep.
Who said that? Bob Campbells?
I wouldn't put the value of block work at much more than $400.
Crank - maybe up to $200. IF you balance it. I wouldn't.
So he's supplying $6-700 in pistons, bearings, and rings? Those are damn good pistons!
Head bolts I get from Veales for $35 the set.
I suggest you look around a little more, ring ACL, etc. I reckon you might be able to do a little better, myself.