Fitch,
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Bottom line, I don't want to come across like I think you are altogether wrong, but it seems like the guy is making a choice based on what he will be getting for his money. With a custom, if you cannot go all out, you could be making a mistake. But you may hit it right the first time. If you get it wrong, then where are you.
No problem. Dialog is good.
The choice here is between re-barreling a Remington 700 that is in hand, or buying a new Savage LRH off the shelf for the same money. I'd re-barrel the Remington. I think it is the most cost effective and least risky way to get to a good, probably superb, shooting rifle from that starting point.
Not sure what you mean by "going all out". All that's necessary with a Remington action that used to shoot well, like this one did, is to do a good job of chambering and fitting the new barrel and re-bedding if a new recoil lug is fitted and the rifle was previously bedded. That isn't Rocket Science. Finding a Smith with a good reputation to chamber and fit a barrel to a Remington action, and bed it, isn't hard to do either. Savages are easiest to re-barrel, Remingtons are second easiest.
The action can be trued but that usually isn't necessary. As long as it's apart anyway, truing the receiver front face, replacing the recoil lug with a ground one, lapping the bolt lugs, and bedding the action to the stock isn't that hard or expensive to do. It won't hurt, and it might help. Truing the bolt lugs on a Remington is a waste of time unless the bolt is also shimmed because the bolt pivots to one lug support when the rifle is cocked anyway.
I've seen, and occasionally photographed, the inside of quite a few Savage barrels. Some are very good, like the barrel on my 112BVSS, the throat and crown of which are shown here:
The crown picture is after I re-crowned it. It looked like this before I re-crowned it:
Others are beyond ugly, like this throat in this brand new never fired except by the factory, .308 Savage Precision Carbine take off barrel:
Or the bore of my Model 10 .243 that had a 4" long section that looked like this:
You pay your money, you take your chances. Savage stands behind their rifles, so with a bit of luck if it has a bad barrel, they will make it right. Sometimes the rifle has to go back to them more than once, like when my buddies BVSS .22-250 was shooting 18" to the right of the receiver centerline at 100 yards, but they did fix it after the second trip. I've also seen Savage barrels that look ugly still shoot an inch or slightly less.
The best thing about a Savage is the action and the bolt design. The floating bolt head is a huge feature for several reasons, the most important being it doesn't move out of alignment to rest on one locking lug when the rifle is cocked like the Remington bolt does unless it's been shimmed. If the choice was between re-barreling a Savage and buying a new Remington I'd recommend re-barreling the Savage (and if the stock was ugly, replace it with one of the many choices readily available on the market).
Standing with empty hands looking for a new rifle, a Savage is very likely going to shoot better than most others on the market for the money. Some of them will shoot remarkably well. My LRPV (.22-250) was one of those. My BVSS (7mmMAG) is another.
When I'm standing there with empty hands buying a new rifle, I buy a Savage more often than not. One exception is the CZ527 American .223 I bought for a walk around varmint rifle. It is just plain awesome.
That said, I've never seen a Shilen, Lija, Heart, etc. barrel that looked like some of the Savage barrels I've seen. They don't get out of their factory, and if they do the smith will catch it in the pre-chambering inspection. Any Smith worth his pay will do a borescope inspection and slug a barrel before investing the time in chambering it. I do that on my own barrels (I don't do barrels, or anything else in the way of gunsmith work, for anybody but my wife and I).
We can agree to disagree. In this case I think re-barreling the Remington is the least risky path to what I would expect to be a very good shooting rifle. If the stock is prettier, that's a bonus. Stocks are easy to replace on high volume factory rifles like Savages and Remingtons.
Fitch