It's mortar, not grout.
Hammer & Chisel.
Mason's hammer (Skutch Hammer)
This is true, it is mortar not grout. As a third generation and 40 year Bricklayer/Stonemason I can tell you that is very poor quality work. First of all, any exposed work should be tooled or struck. Typically a concave joint but there are various types of joints that can be used for the finished product. That aside, all joints should be free of voids of which this work certainly is not. I have seen the inside of elevator shafts or walls that were going to be covered with ceramic tile look better than this. It does not take that long to strike or tool the work if exposure is in question.
Now as far as a remedy if they are not coming back to fix this. Yes, you could use a hammer and chisel however a grinder would be easier and faster. If the wall is fairly new the joints should grind out easily. A 4" angle grinder will work just fine but be careful that it doesn't wander on you or you will cut into the block and end up with a bigger mess than you have now. Carborundum blades should work on this so no need to spend the money on a diamond blade if you don't have one. You only need to grind it back to a depth of about 3/8" to 1/2". Then repoint the joint using a trowel or hawk and a 3/8" or 1/2" backfilling trowel or sometimes called a Tuckpointer. Not to be confused with a pointing trowel. If you really don't feel like grinding a pointing (or don't feel like you should be fixing somebody else's work) another alternative might be to get a piece of 1/2" threaded rod or "all thread" cut it off to maybe 24" to 28", bend a small hook or handle on each end and run it through the joints kind of like a file. This will give you a concave joint but certainly won't fill in any voids. That you will still have to point in with mortar. If you go with the threaded rod route, ideally painting the wall with some block filler could hide some of the sins. I would only try any of these options after I called the contractor to come and fix it or tear it down and rebuild it, that is if you haven't paid him yet.
Good luck.