If you have a class with parameters that are only used under some conditions and are not needed under the others, you definately should do some refactoring. Try Extract Class refactoring, for example, to group some parameters and methods. If you have some typecodes, that indicate the need in some parameters, think about replacing typecode with subclasses if typecode is not changing during lifetime of an object or replace typecode with state/strategy otherwise. Then just move fields and methods from original class to these newly created classes.
I recomend you to read Martin Fowler's Refactoring book. It's just awesome and very helpful.
The builder pattern is ok, but you may want to implement factory method pattern for object creation.