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My 2 cents. It looks like they are going to have to do a total rebuild to save that motor. Honestly that is not a big deal.... with no cracking or parts that cannot be re-machined into spec the motor could even be built better than factory. (IE Blueprinted.)
The thing is you would have to demand they do it. I would want the block honed (at least a finishing hone).... new pistons and rings.... rotating assembly balanced and blueprinted... block align bored which with a spun bearing is almost a no brainer to do. I would have the block basically blueprinted to ensure it is square and true. Also would do the same to the heads. (If that is done the motor would have no chance of blowing a head gasket or other leaks.)
To do it right it would cost them more than just replacing the engine. For me a correctly rebuilt engine would be as good as a new one. (With the right people doing the work it could be better. Think hand built custom production motor AKA LS9) But you would have to watch them to ensure they do it right.
My recommendation is to educate yourself on the proper why to fix a spun bearing/ rebuild a motor. Then use that knowledge to ensure that fix the car to your satisfaction. Don't settle.... make them do it right.
Good luck. I am sure you will get them to make it right.
BTW Looks like the mechanic is on your side. (The guy is taking pictures for you and giving you information.) Use that relationship to build your case. A case of beer to a honest nice guy is tons cheaper than paying out of pocket for a new motor.
EDIT: One other thing. The bearing spun for a reason. To make a permanent repair they need to figure out why and fix the underlying problem.
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2016 2LZ Z06 Blade Silver
2013 ZL1 BLACK on BLACK <SOLD>
Roto-Fab CAI
2010 2SS/RS BLACK on BLACK <SOLD>
3" MBRP 304 Stainless Exhaust
Roto-Fab CAI
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