there is some information about acceptable methods of creating holes at the AISC website (
Steel Solutions Center, Technical Resources, Engineering FAQs. section 2 has several items. this from section 5:
5.1.3. Does flame-cutting of bolt holes affect connection strength and performance?
Generally, no. Iwankiw and Schlafly (1982) investigated the performance of double-lap joints with holes made by punching, punching with burrs removed, sub-punching and reaming, drilling, flame-cutting, and flame-cutting and reaming. The comparison of 18 samples using 1/2-in. thick ASTM A36 steel plates with standard holes indicated that there is no significant variation in connection strength according to the method of hole formation under static load. Additional considerations may be warranted for much thicker plates, steel grades other than those tested, and Cyclically Loaded Structures.
Iwankiw, N.R. and T.J. Schlafly, 1982, “Effect of Hole-Making on the Strength of Double Lap Joints,” Engineering Journal, Vol. 19, No. 3, (3rd Qtr.), AISC, Chicago, IL.
last modified 23 August 2002