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I know that Relations[battlebrothers.fandom.com] do, but I'm not sure the same is true of Reputation.
According to the Wiki article on Reputation[battlebrothers.fandom.com], the only thing it does is removes the Raze Attached Location Contract when it's high enough. This could have changed since the article was written, but it'd take quite a lot of work to go through the game data to find out.
Well it affects prices and if u piss em off hard enough you cant enter. It is fine to do inplaces woth no strategic value like buildings or trade goods.