98 Contour transmission, opinion on cost

I have a 1998.5 Contour LX and the transmission needs to be replaced (I have a mechanic friend who does agree on this point). The price I am getting is approximately $1700 for a transmission plus $1000 labor.
The person who is building it (at a local transmission shop) is also going to include a warranty of 24 months/24,000 miles if he rebuilds it himself, or possibly 36/36,000 miles for a rebuild he may be able to get for the same cost. My mechanic friend is trying to steer me to a cheaper shop that can't offer the 24 months minimum warranty. The car currently has 76,000 miles on it.
My question for anybody familiar with this transmission is this a reasonable price to expect for this transmission and installation? From what I've seen on the internet, it seems a good price considering the minimum of 24 months of warranty, but I just wanted to get the opinion of someone who more familiar with it, because I really don't have a clue.
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