I have checked with a local shop to overhaul my 36 FC. I about had the big one when they told me between $3,000 to $5,000 for a complete overhaul! What don’t I understand here?

For a quality rebuild that estimate is not out of line. Actually, some quality machine shops charge between $5,000 and $7,000 to rebuild an early Chevrolet six cylinder engine.

They are not talking "overhaul" but rather a complete rebuild.
The sad part is many of the shops do not know what they are doing and cause more problems than its worth.

Wow! Not in the budget this year. I’ll drive it gently and let it knock on the hills. Any suggestions?

If you have any mechanical skills you could drop the pan carefully and try to determine the source of the knock. Maybe new main bearings would solve your problem. anyway a good look would not hurt and could give you an idea of what needs to be done.

I would drop the oil pan (probably needs cleaning ahyway) and adjust the rod and main bearings.They cause about 90% of engine knocks. Follow instructions in the shop manual for the correct adjusting proceedure.

I agree with all the above.

In addition, I would do a shade tree overhaul as follows:

a. Do all that Gene and others have said.

b. Slip the pistons and rods out (cut ridge first) and re-ring the pistons. Stagger gap in rings. Use regular steel rings.

c. Hone the cylinders. Cut the ridge at the top of the cylinder even though you are not raising the height of the pistons.

d. Grind the valves. Hand grinding will work.

e. Clean everything and check the head and manifolds for accuracy. May need planing.

f. Get new gasket set.

g. Reassemble carefully with same lifters, pushrods and rocker arms, etc to same cylinder they were removed from.

I may have missed something. You'll note it or others will point it out. Anyway, you'll be good for another 60K or so.
Good luck,
Charlie

BTW: Just do it and save money. Don't mic anything because if you do you'll convince yourself that you need a 7k rebuild. Just kidding. Depending on severity, you may need to find where the knock is coming from. May be rod, main, or piston slap. Don't worry about it if it just piston slap, merely tighten up the mains and rods. Rotate crank as you do so you don't have any "too tight" issues.

BTW2: You can pull the cam and have the machine shop resurface it but probably unnecessary. Remember, we're talking shade tree overhaul here.

I would check the timing to be sure it's ok. If it only does it on hills it may be just "pinging".

i have a 36 fc. parts along cost me 3500.iwill be happy if i can get by under 8000. i getting first class work pius while i haveing it done i will redo any thing that needs done even drivetrane. we might get by a little less. as mine towing days are about gone wi feel saver and have more fun then towing it.i through that a lot of money but bettet knowing what you got then gettings something and starting all over. and the 36 is part of the family. ps i gave up a new truck to have this done. see all kinds of new trucks but none no pretter then 36 coupe. thinks to alll my dreaming comeing togather .

Steve,
It knocks/pings any time it is under load. While sitting still at idle, it purrs like a kitten.

"Wow! Not in the budget this year. I’ll drive it gently and let it knock on the hills. Any suggestions?"
From your previous post I thought perhaps it was only under heavy load such as "on the hills". In that case I would suggest following Gene's suggestion on the bearings. I had four loose wrist pins in my 32 and it never knocked, although after 5000 miles they almost wore thru the block.Most of the miles were on 6 cyl tours and I'm sure with all the experts on the tours if it was knocking someone would have pointed it out.