The order was established by the Sejm on 2 July 1949 for "awarding unique achievements in the task of building People's Poland".

A person decorated with the order had the title of a Builder of People's Poland (Budowniczy Polski Ludowej).

The order was awarded to many udarniks (supposedly high productivity workers), notable party members (including military personnel) and others.

Society of Fighters for Freedom and Democracy) and territorial units (cities and administrative entities - voivodeships, for instance).

In the center is a white-encircled blue medallion, which depicts a gold male figure carrying a hammer and a red banner.