Thanks for the replies everyone.
He seems to be getting worse

he's peeing all over his room when we are out now. We are tempted to quit with the pee-pads altogether.
We've been toying with the idea of getting one of those astro turf mats and putting it on our balcony, thus making Gus an outside dog of sorts. But since he is so willing to pee anywhere in his room, I'm thinking we would have to crate him. However he will be alone as long as 8-9 hours, and that is probably too long to crate a 12-week old puppy, even though he lasts that long overnight. Do you think that we could make him an outside dog at this point, or is inside training our only option?
I don't mind the accidents along the way, but a sign that things are improving would be nice :/