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I have done the timing belts on '98 S70s on several occaisions (I have had 2 of them, which I owned for several years), and let me tell you, it can be a tough job if you don't know exactly what you are doing. I would bet the shop guy had very little experience doing belts on an S70, and did not know lots of the "little details" that have to be done to do the job right.
For instance, one really should ALWAYS replace the tensioner, mechanical or hydraulic, just to be sure, every time. Yes yes, I know folks that reuse them (I have tried in the past, and regretted it), and in the TP volvo manuals there is a process for testing them to see if they are OK for reusal, but really, they are a fairly affordable part compared to a $3-5K engine!
Other little things like the guide plate on the outside of the crankshaft and the pulley in that location... you can surely manuever the belt over the plate and in-between the shaft and a guide that is in that location, but doing so sometimes requires the creative application of force, which may or may not damage the belt if not done "just so." I am sure lots of shop guys do this because it can shave lots of time off of the job (and so have I, several times), but that time savings can come with a risk. If you can, it may be better to remove the parts that are in the way and just slide the belt on without forcing it in.
Other things, like how the guy stablized the cams can make a difference. For example, I have seen guys position the belt over the twin cams and then use vice grips to lock the belt in place over the cams. Probably fine if you use a rag to cushion the biting part of the pliers to prevent damaging the belt, but I have seen folks just clamp them on there, which can cut into the belt.
None of these would probaly break anything quickly, but after a few K miles, wear and tear could occur much faster resulting in catastrophic loss of your timing belt.
Also, the accessory belt has to be put on carefully also, and has its own tensioner, which while not requiring replacement, must still be carefully rotated to releive tension on the belt prior to replacement. If they don't, and force the belt on, same story as before, possible damage the to the belt, earily failure, and you may get the accessory belt wrapped up in the timing belt, and as Emeril likes to say: BAM!
Ok, yes, I am a long winded, but I have been severly disheartened by the shenanigans I have seen some of the cheaper end shop mechs pull. Just my 2 centavos!
If you are not one to do it yourself, just have the dealer do the belt, its around $200-$300, but compared to a $75 job that runs your engine, why risk it? I would get your new engine in, and take the care straight to the dealer for a belt and tensioner replacement, and a complete check up. You should be just fine after that.
Good luck!
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