A built long lock with stage 3 PI heads, custom cams, new timing chains and valve train components, windage tray, gaskets and new fasteners eat up all of that 7k and may even cost more depending if you are paying labor as well!
Then the transmission issue and that leads to differential and axle issues.
Not to mention safety equipment. Upgrade brakes and suspension is a must with that kind of power...
Im sorry but there is no way in hell it would cost 7k to hit that number. You can easily find decent deals. If he can work on his own stuff and already has a kb 2.6. then a decent shortblock, trans, and rearend would not cost 7k. I could get all that built for 700 for less than 5k. Like i said, i will be a pulley away for less than 13k. That includes my entire v8 swap, suspension, built drivetrain, kb, body kit, paint, wheels.....i mean everything. Including what i bought the car for