We recently hired professionals to come in and install on-site finished hickory flooring. We did not choose select grade because we wanted to have all that the hickory has to offer, however when we came into the house after the installation was complete. We noticed a long streak where there is Abigail gouge maybe 1"5 foot long. It was probably in the wood. This is at front door where we come down the stairs and turn. The filled it with putty that is already coming out. The contractor said that it was a wind tunnel and that there is nothing we can do now. Seems like it was a bad board that should have been culled. We are really frustrated and have not made the final payment. They also sawed the stair nose in half saying that it was the only way to get it in. I think they could have removed the railing. They put putty in that crack which is already coming out. Frustrating! There are also a few places wher the board has shrunk and there is a quarter sized gap.

Not sure what you mean by Abigail gouge or wind tunnel. Pulling a railing can be time consuming and costly so they should have asked or put it in the bid. Gaps over a quarter size and putty coming out is not acceptable in my book.

If it is a site finished floor than replacing a board could be difficult and open up a new can of worms. Id say you meant worm tunnel not wind tunnel. Id be honest with him and upfront, tell him if he wants to get paid the board needs to be replaced. Removing the railing is not usually an option unless you want to pay for a stair company to come in an r&r the rail. You have the rail removed and he replaces the nosing and you get the stair co to reinstall the rail or live with it. Thats a fair way to handle the nose, I wouldnt do it for free just because You dont want a seam in the nosing.
If you have quarter sized gaps come out that would indicate to me the floor has been down a while, how long ago was it finished.

The floor was put in November and December. The are just finishing the quarter round. I have not made the final payment. Not sure how to decide whether to make him replace the damaged board. I just wish it was not in the foyer in front of the front door and right where we come off of the stairs and turn. It is not in a place where I can put a rug.