1.  The need for change of scope could definitely need more time and or funding. The stakeholders must be told and told the truth. If circumstances caused it, such as weather, or even incompetence. The truth out helps find a solution. Where ever the incompetence occurred should be confronted, and measures to correct it should take place, even penalties, including termination if mandated.

2.  In the normal course of a project, using the change process would change the scope of a project. However, a situation like what we saw in the Rosa County case is such a mess.Starting from scratch may be the only way to rescue victory out of the jaws of defeat.

What is more likely to be the case is scope creep, expanding the deliverables without a formal process.  I saw this happen with a software project I was running in the early eighties.  I was the culprit.  I didn't understand the problem and drove my programmers nuts with "little" fixes.  We finally came to our senses and established rules for fixes and upgrades.  As a result, my lead programmer canceled the contract he'd taken out on me.