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AISC Punched Holes

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I just received a nonconformance report from one of our company inspectors
who is reviewing the work of one our vendor's structural steel shops.  He
states that "Bolt holes punched in gussets of beams...have swedged material
inside the holes that culminate with a crack and cracking or delamination
in the body of the hole."  I talked to the inspector and he also said that
the cracks only happen on the thicker material (+/- 1 inch plate) and he
believes that it may be a combination of the punched press is under
capacity and/or a worn die.  The gussets plates are already welded into the
columns and beams.

The problem is that the shop says "...the holes were punched within the
limitation of the AISC specification.  We do not find an industry standard
to address the issue of the surface condition."

I reviewed the various AISC specifications and I find mostly dimensional
tolerances.  Is there a code/specification/etc. that covers the surface
condition especially the crack problem?  My first reaction is to have them
grind out the cracks then weld back and ream the hole to proper diameter.
Any other suggestions?

Thomas Hunt, S.E.
Duke/Fluor Daniel