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It will cost you more than $250 to find out. :) If I were in your position, I'd simply ask them what the basis of their $250 fee is. Either they'll point you to a clause you missed, or they'll have to admit there isn't one, and just might back down. And builders overwhelmingly don't - I'd...

Yes, no, maybe. This really can't be answered by anybody but your own lawyer. All the emails between you and the builder may also form part of the contract, so you'd have to go through those, too. And any pamphlets or ads they may have given you, and you'd have to look carefully at their...