The laboratories are criterion referenced assignments. This means that it does not matter how well the person next to you does: all that matters is how well you do. It isn't easy to get right, necessarily, but I'll try—and in doing so, I'll try and be fair.
What does this mean, though? In a picture:

I will make the criteria for the lab explicit. You can choose to do enough work to earn a C. If you do, you will get a C. If you choose to do more work, you can earn a B. If I say you meet the criteria for the B, then that's it. Or, you can push to earn the A. Note that an A means excellent, and sometimes earning an A will be challenging. This is the way it should be.
I like this kind of grading because it allows you to choose how hard you will work, and what you will strive for. If you feel the criteria are unfair, you should discuss that with me early (perhaps on the mailing list, even).
Failure to earn a C means failure. The grading scale goes from F, to C, to B, to A. There are no D laboratories. Also, there are no "B+" labs.