Here is my conundrum. I am working with a general contractor who is well-meaning but not a great communicator. As such, our project is off-schedule and over-budget (not uncommon, I know).

Our 1937 house is about 1600 sf downstairs and 800 sf upstairs.

Where we are:
1) currently down to the studs in the kitchen for full remodel.
2) Half down to studs upstairs where we are putting in a new bathroom
3) The basement is not finished and the ceiling is fully accessible
4) There are holes in all the other rooms where loose-pack insulation was just filled in; foam insulation will be added soon upstairs.

The electrical conundrum:
We have a sub electrician who is contracted for 6,000 to:
*add a new electrical panel (cost of panel separate)
*Add new electrical per code for bathroom addition and kitchen renovation and install owner-supplied fixtures in kitchen and new bath. 1,000 of the 6,000 is earmarked to abate knob and tube in walls where we're insulating.

It ends up we do not have knob and tube. But we do have old BX cable (original to house) and snakeskin from some remodeling in the 60s.

It seems like we will be losing a prime opportunity to upgrade all the wiring while the walls are open and there are holes in the walls and foam insulation hasn't been installed yet. But the contractor keeps pushing back on this idea (i think because they are behind and they only get paid when each step is done and inspected.)

After begging for a bid, we got one that seems really high considering the conditions for the rewire.
What I'd like help with:
1) Am I crazy if I don't pursue rewiring during this moment in time?
2) Is the bid below as crazy high as I think it is?
3) We are bringing in another electrician to give us a bid on Tues, but I fear that bringing someone else in after this sub has already done half the electrical work in contract might push this project back even farther than expected (we're paying two mortgages while remodeling is happening).

Any insight/help is much appreciated.

The bid:
Original contract amount: 6000.00
Add 6 new outlets and wire for 6 new lights: 2215.00
Rewire of house 4299.00
with the rewire of house to include removal of bx and
old romex, installation of new branch circuitry from the
panel, plug wires, light wires, new standard devices, and
new boxes as is necessary)
Total this contract 12514.00

Ask for a list of contractors who are registered with the city. Get another opinion.

Your GC is lazy. He doesn't want to do anymore than he has to.

It is YOUR HOUSE. Don't back down. Make sure its done the way you want.

NOW before the drywall is up.