OP here.
The above is pretty much how I figure it- locally it would have cost me probably close to $3000 all in, due to the skilled labor shortage here (just north of Portland), so I saved anywhere between $1000 and $2000. I'll hand him $500 cash and if it is too much he'll give me back what he considers excess. If he keeps it all, I still saved a bundle and he's a happy camper.
By the way, I had it inspected today and passed with flying colors. My friend did 90% of the work and I acted as his assistant. I am capable of doing the job, but realistically it is was easier to do it himself than watch me work at a newbie pace. He knew exactly what he was doing and it still took seven hours.
So, I'm happy, the hazardous Federal Pacific panel is gone and I have a generator interlock so I can power my whole house directly.
Thanks again for all the feedback.