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This is probably an over-simplification, but I either excuse, grade them
easily, OR grade them just like all the other projects (often quite
low). Grading them low for unfinished work actually isn't a bad
approach because I get feedback to the students right away with the
understanding that they can do something about it if they want. They
know that I'm flexible, so if they want to work on a project at home or
finish it in class or do extra credit; all they have to do is let me
know their plan and then carry it out. I'm even open to negotiating a
new grade if they can justify it. The interesting thing is that in 75%
of the cases, the kids don't care enough to do a thing about it and
simply accept the grade for unfinished work. I'm satisfied because I
used to really go out of my way to be fair to them. Now that it's their
responsibility, it puts it into perspective.