I like this solution, as it sends a message to the roommate that contracts represent an escalation. The verbal agreement was made with the assumption that there would be no need for legal fees. By introducing contracts, the roommate has changed his side of the bargain, so the bargain needs to be renegotiated.

For a dormroom friendship price, he should get a dormroom friendship product. The contract indicates he is expecting a professional developer product, so he should expect to pay a professional developer price.