Hello,
I may get some of the terminology wrong here-- please forgive my serious lack of knowledge in this area! We have just had two new condensing units installed in a new location on the outside of our home. The contractor had the installers run the lines up the exterior wall to the siding to enter the basement through the siding at the rim joist (? ) rather than through the exposed concrete foundation wall. The lines are very unsightly and rise about 9 feet. The contractor said he didn't like drilling through foundation walls. The walls are above ground though, and I'm not sure I see the problem. Are there any structural issues or long term issues that could result by drilling through the concrete wall possibly a foot or so above ground? There are two units with associated lines.

Thank you in advance for any insight!

No issue but he went the easy way. If you have a poured foundation, they usually run through the rim joist. With a block wall, they usually go through the wall above grade. I have 2 homes, a log home with the lines through the logs and another with the lines through the block.