A couple...
First, the fact that you're getting more tones in the highlights is coincidental. Certainly, whatever you're doing helped the highlights, but basically, it's the exposure and, secondarily, the development time that determines whether you see detail in the highlights. If you extended development significantly longer than you normally develop with your factor, then that is the same as adding a bit extra exposure to the paper. Also, you may have been underdeveloping before...
As for contrast control; don't get your hopes too high. Modern projection papers don't respond all that well to contrast control by changing the development time. As print development progresses, it reaches a point where the optimum (final) paper curve is reached. Extending development after this point just moves the entire curve, i.e., increases paper speed and acts just like adding a bit extra exposure (aside: I use this to fine-tune my print exposures; it's a lot easier to add 15 seconds of development time than to add small amounts of exposure). Sure, you can pull the paper before development reaches the optimum point and get a less-contrasty print. Some here (Ian Grant) has a method to control the exact tone of warm-tone prints using a sliding scale of exposure and development time as well, but I don't think it affects contrast that much.
The purpose of factorial development is to provide repeatability as the developer loses activity. During a session, you note how long it takes for a medium low tone to first emerge after the print is immersed in the developer. And, you note how long your development time for a well-developed print is. Divide the latter by the former to get your factor. Then, as times for emergence of your low tone increases due to developer exhaustion, you simply extend total developing time by multiplying the emergence time by your predetermined factor. The factor and the exact tonality you choose are somewhat arbitrary. Just choose a low value and make sure you're not underdeveloping to start with.
Apropos this latter: If you're developing fiber-base paper, times less than 2.5 minutes are risking underdevelopment. I like a three-minute standard, which I can then modify in small increments in either direction for fine adjustment.
Hope this helps,
Doremus