$1250 sounds about right for labor, given that this service from reputable shops that are also forum sponsors (ACM on the East Coast, EAS in Cali, etc.) costs anywhere from $2000 to $2500 with the cost of the replacement rod bearings and rod bolts themselves included in the cost.
http://www.m3post.com/forums/showthread.php?t=1325209
Happy for you fellas that are getting it done, congrats on the newfound peace of mind!