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Sorry you are having issues with your Nordyne packaged unit.Let me grab a manual on the unit and see what info I have.
I am actually showing the unit to use the M0023904R. See link below
Unfortunately you will have to go back with a variable speed ECM motor.You can not use a standard PSC motor as everything is controlled by the control board.
700 bucks is actually a good price installed as most contractors get around 1100 bucks for these motors installed.
You could save a couple of hundred bucks by buying online and installing yourself.
See link below also.
Now one quick question, has contractor verified that motor is not under warranty?
If motor is under warranty and he is getting it free, the 700 is extreme for just labor.
Wgat is serial number and last name unit was registered under when new?