We tried to keep as much original as possible since the house was over 100 years old, but decided to just gut the Kitchen and Bathroom since they were awful. 

Trust your gut.  

Sure if you gut the property down to a shell you will likely remove most of the contamination but if every remaining surface is not cleaned and then that surface is sampled it will test positive I have been told.

Let the numbers and your gut be your guide.

I have a guy that works way cheaper then he should and does them for about $1300 labor which I know is crazy so I am trying to get a grasp on reality when I start shopping rates again.For a small full bathroom we typically do a complete gut except we keep the tub and reglaze it -  Labor usually consists of ceramic tile shower surround/tile floor - new toilet,light,mirror,towel bar,faucet, shower head - trim and painI know this is region specific but just interested to hear others

And lastly, go with your gut.

To me, when I'm trying to do something, I want to work with people that have the mindset of, how can we make this work instead of instinctively saying no.  

. :-) I'm guessing not a good idea"Follow your gut here.

There was an episode on American Greed about Remington financial.. they were in business over 20 years their target was small commercial to bigger multi or commercial.. they charged 5 to 10k DD fee's estimated they brought in over 200 million in the 22 years they operated.. by the time the FBI was done with them.. they could not establish that they had made more than 11 loans in all those years.... long prison sentences. your instincts are fine and intact.

If you disagree about ARV, provide some comps - not just your gut feeling.