I tend to agree with others that a contract may scare off a good engine builder. It might send up a red flag to the builder that you could be a one of those "difficult" customers, and passing on the job would just be simpler for them. I am also of the opinion though that if you feel you need a contract, you should probably find someone that you are comfortable enough with to not deem a contract is a necessary. That is just the way I prefer to work though. I like to get word of mouth referrals and visit a shop at least twice before I commit to dropping a big chunk of change. If you schedule an appointment, get the tour, then drop in a month later to see how all of the various projects have progressed, then you start to get a sense of the pacing and flow of the work going through the shop.
Just my two cents. I've had a few difficult deals myself and completely understand where you're coming from with American Powertrain. I've never spent 40k with an engine builder though, but if I were I would want to make damn sure I really knew who I was working with, and if a contract was no big deal for them, it probably wouldn't hurt either.
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