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With the increase of circuit sizes and decrease of feature sizes it is expected that the overall performance of VLSI circuits will be more and more affected by signal propagation efficiency along interconnects. Wires can no longer be modeled as perfect conductors. Some electrical effects, previously considered as secondary, like for example parasitic loading introduced by wires, have to be taken into account at the layout design step. In this paper we address the problems of incorporating timing constraints into the placement and routing of integrated circuits. First, we introduce the timing models, formulate the problem and discuss graph models suitable for its analysis. Next, we give an overview of algorithms resulting in physical designs of improved performance in comparison to those whose objective is just the minimal layout.