It would not add red tape at all. It would be one more line in the contract that basically asks if there will be community benefits emanating from this project and what they are. It's an extra box in the already numerous requirements within a contract with the federal government.
It wouldn't add any additional red tape and it wouldn't add costs, because the more communities are consulted, the more they are already in the driver's seat for identifying what kinds of benefits they would get from a project. When they start to see those benefits emanating from a project, they're more likely to get behind a project and not slow it down with opposition. That saves time, and it saves money for the contractor and for the government.