jowatson, good evening.
I must admit I looked at your post previously, but was unsure about a reply.
Now given that there have been over 100 Views of your post, and more importantly no replies, I thought I might dip a toe? so to speak.
In your post you note that you are considering covering the red brick in Concrete? I assume you are intending to use a cement based render, Concrete does not take well to being troweled on to a vertical surface?
As per your builder I do not think using a grinder of any type on a red brick is a good idea, red brick can be very soft, the action of a grinder will simply gouge holes and shake loose any small defective parts of the soft? brick.
If you must remove the paint, have a look at "Soda Blasting?" think of shot, or sand blasting, but with a soft material, Soda?
How about you discuss with your Builder the possibility of cladding the painted brick area with a Stainless Steel mesh, fixed back to the brick with Stainless Steel screws? why, because the Stainless Steel mesh will not corrode [Rust] but provide a strong reinforcement for the render, as for the render suggest you incorporate a waterproofing agent in that mix.
OK so far, now for the "But" --- there is invariably a "But" that But is where is the DPC in this wall? its position is critical, in that render below the DPC is very, very vulnerable to the adverse effects of frost, given that the brick work below the DPC is considered wet / at times Saturated?
One final thing, suggest you discuss with your builder that you do not take the render down to the ground level, rather hold the render up off the ground using a "Bell Cast" bead, the rational for the last is that if you allow the render to go down to the ground, ground water will percolate up at the interface of the new render and the original brick wall.
Hope this assists?
Ken