The present invention, generally speaking, provides a placement method for the physical design of integrated circuits in which natural topological feature clusters (topo-clusters) are discovered and exploited during the placement process. Topo-clusters may be formed based on various criteria including, for example, functional similarity, proximity (in terms of number of nets), and genus. Genus refers to a representation of a netlist in terms of a number of planar netlists—netlists in which no crossing of nets occurs. Topo-clusters drive initial placement, with all of the gates of a topo-cluster being placed initially in a single bin of the placement layout or within a group of positionally-related bins. The portion of a topo-cluster placed within a given bin is called a quanto-cluster. An iterative placement refinement process then follows, using a technique referred to herein as Geometrically-Bounded FM (GBFM), and in particular Dual GBFM. In GBFM, FM is applied on a local basis to windows encompassing some number of bins. From iteration to iteration, windows may shift position and vary in size. When a region bounded by a window meets a specified cost threshold in terms of a specified cost function, that region does not participate. The cost function takes account of actual physical metrics—delay, area, congestion, power, etc. "Dual" refers to the fact that each iteration has two phases. During a first phase, FM is performed within a region on a quanto-cluster basis. During a second phase, FM is performed within the region on a gate basis. GBFM occurs in the context of recursive quadrisection. Hence, after GBFM has been completed, a further quadrisection step is performed in which each bin is divided into four bins, with a quarter of the gates of the original bin being placed in the center of each of the resulting bins. GBFM then follows, and the cycle repeats until each bin contains a fairly small number of gates. Following the foregoing global placement process, the circuit is then ready for detailed placement in which cells are assigned to placement rows.