By following the recipe above, you can craft and place the Builder's Hut Chest.
First of all, the Builder does increase in building speed the higher level his hut is. So keep that in mind when making big builds with him.
The Builder will need the player to place resources (cobblestone, coal, wool, sand) into the chest as needed so that the builder may use them to build the buildings you've assigned him to build. He will always be a male. To assign the builder to construct a building, you must first craft it's corresponding building chest, place it, and right click on it. Once you do, the chest will open, and you'll have the normal chest interface, with the word "hut" In the upper left hand corner. In the upper right hand corner there will be another button that reads "information".
Once you click on it, a screen (hut interface, as seen to the left), will appear. Once here, you must left click "Build House". Once that is completed, there will be a sign on the top of the chest. This tells the builder to build this chest into the building.
Once the builder runs out of a certain resource necessary for him to continue construction, he will return to his hut. If you right click on him you will find that he will either have a list of things he needs, or he will say "I will not work until I get my salary", which usually means that he is out of things to do.