You will want your pump set deeper -- I would think about 140 ft unless there is a contrary reason. A 1/2 HP 7 GPM pump seems appropriate. That can be 230 or 115 volt. If you wanted a 10 gpm pump, which you probably don't need, then you would probably want 230 volt 3/4 HP. You can also easily get 1/2 HP submersibles in 230 volts. The 230 volt allows smaller wires.
This snip is from table 11 of the Franklin AIM manual. It looks to me that you will need at least #10 wire to go 250 ft (over 100 ft and 140 ft down) with a 115 volt pump, but #14 would be sufficient with 230v. I would have a significant preference for the 230 volt. This would require a 2-pole breaker in the breaker box, but that is a small increase. If you keep the current cable, you need to mark the white wire to a hot color. This can be done by a red or black Sharpie marker based on what I have read. A pressure switch normally has 2 poles (pairs of contacts). For 120/115 only one pole is used. For 240/230, both get wired in. Not a big deal to do normally.
I am not a pro. Price sounds very good. It is good to get rid of existing steel pipes that are not buried and use plastic pipes instead due to rusting.
What does an estimate mean? Is this somebody who has done good work for others in the area?