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Yes it does work on district projects for me at least. And it gives absolutely awful return for your investment. I built a 7-charge builder and used it on a project to give me a whopping 76 production... for a builder that cost 158 production. And of course, all 7 charges are gone since it says "use ALL of a builder's charges" Ehhhh now I want to reload my game before I built the Royal Society because that's just awful.
It's only good for space projects. As long as you don't build the builders in the city you have the spaceport while the projects are already unlocked, the production you spent on the builders doesn't matter since all that matter by that point is the projects. It's an indirect way to transfer production from other cities to help in the project (produce the builder in other city), start working on it before you unlock the project or even turn gold into production (buy the builder). I wouldn't go for other building of I'm trying to win scientific.
The description say district project, so it should work on any project, though it seems like a waste to use for other projects, unless you desperately want great people points. IIRC you need to use the builder on the district that project belongs to. It's either that or the city center.
It's a way to push forward the science victory, all the last tier of government buildings are meant to help close in the last stage of your chosen victory
Seems like a pretty decent return to me.