In reply to cha1n:
There's a booklet that explains the party wall act in a lot of detail (just google it). It's pretty useful. Specifically to answer your question:
'The Act contains no enforcement procedures for failure to serve a notice. However, if you start work without having first given notice in the proper way, Adjoining Owners may seek to stop your work through a court injunction or seek other legal redress.
An Adjoining Owner cannot stop someone from exercising the rights given to them by the Act, but may be able to influence how and at what times the work is done'
That's a direct quote. You don't need to pay compensation unless something goes wrong.