wrote

Current
steps -http://smg.photobucket.com/albums/v704/lurkerlee/problem%20areas/?act...

As has been said, the present steps are a code violation and as you
have said, not comfortable or safe.

Yes. Looks like original outdoor ones. Would not be code compliant now for
exterior either but would have been grandfathered. Once the room was built
around them, then local code compliancy comes to question. They may no
longer be grandfathered? Area dependant.

Example, when I had my sunroom redone, we were required to upgrade a door
lintel and electrical to current standards. Both were grandfathered before
but not on a rebuilt room.

Is there a drawing or written description of what the contractor is to
build?

As I see it,the contractor wants to build a code compliant landing at
the door, then the steps.
He originally had in mind a set of steps without landing.

I'd add to make sure the fellow knows his codes. This can be a costly
mistake if it has to be redone.

I agree with Alta47 as well, unless the existing steps are so covered you
cant tell thery are there, it's gonna look tacky. Encasing with brickwork
over them (leading to 2 taller steps) is the only untacky way besides
encasing completely in wood, that I can think of. All other methods I can
think of involve removal of the cement steps.