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That seems expensive nemo300 I got my bathroom tiled for 1750. Bathroom is 2.8x2.4 with double spa and floor to ceiling tiles and feature tiles in a niche. Water proofing should cost that much. It shouldn't cost more than $100 for materials and a days labour about $300

Don't forget to add if you remove all the tiles, before you retile the floor and walls you will need to waterproof the whole area again as the waterproof usually comes off with the old tiles. Have you thought about just retiling the floor and have the wall tiles, bath and shower hob just...