Chiphead,
What do you plan to do about (to) the original machine shop? Are you still communicating with them?
If they do not want to pay the cost of making good their bad work, are they close enough to allow a conversation in small claims court (it does not cost much; you get to state your problems in public; and, you might get a little justice)?
I am not a lawyer but I have successfully used the common law argument that if you pay someone for goods or service and they fail to provide the goods or service, they must reimburse you for the reasonable cost of having someone else provide the goods or service.
First, of course, good luck getting a good engine and learning what was wrong with the first job.
Tim